Check the line from the vac pump to the intake manifold or air filter for oil -- sounds like you may have a leaking vac diaphram -- this will suck oil out of the chain case and blow it down the engine. Nothing wrong with the rings, etc.

Check the stretch on the timing chain, too -- you may need a new one. Sounds as if your injection timing is off. That will give you lots of smoke and low power, and diesel smell.

Oil consumption smoke smells strongly of burning oil, not diesel, whatever the color. A bad vac pump will cause whitish blue smoke and very strong oil buring smell.

Peter

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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!