Check the timing chain, I'll bet its about 12 degrees too long!

Swap it out, then check the injection timing (which is now also very late, but will be close to correct with the new chain).

I'd also check valve clearances. If any are tight, chances are the valve stems are gunked up and you need to set them fairly loose (0.010" or so) and recheck in week. If they close up, reset again fairly loose and check in a week or so -- when they stop changing, set to spec. This will work the crud off the valve stem and let them close properly.

If you don't have much blowby, and still have problems starting with chain and timing OK, it's probably time for a valve job. If the valves are all tight, they are probably shot by now from neglect.

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!