smoke
 

small black puff on start up, and pretty smokey, its a haze not black

did DP, valve adj, fuel filter, doing the cam marks to check the time shows its ok for that method

banjo is clean, but its a slug off the line

would over full of engine oil slow it down?

smoke does go away abit after it warms up, so maby a bad cylinder not firing?

Some other possibles for the puffy part: Bad Glow Plug, an Injector or 2 not performing well, a small air leak.
[Mine would run a little rougher until warmed up. It turned out that my Fuel Inlet Hoses were hard and for some reason after the Engine compartment was hot the air leak would go away; perhaps the heat expanded or softened the hose.]

You did not say the color of the Hazy smoke. When I had the IP on the Volvo too retarded it produce a lot of white billowly smoke that turned to a white haze as I advance it closer to the time it was supposed to be; after getting it to the right point the haze dissapeared.
Old Diesels with engine wear can produce some gray haze until they warm up. But, what was the temp during starting?

The 2 Wagons shown in your signature have a lot of miles on them.

I tried timing my 84 300D to between 27 and 28 BTDC and it had some gray smoke until it warmed up at idle and nailed slightly. (I also have Monark Spray Nozzles.)

I did not like this and retarded the timing some. Here is the thread:
http://www.peachparts.com/shopforum/diesel-discussion/248979-my-results-timing-advanced-28-degrees-617-952-a.html?highlight=timing

Could be one or more cloggged injectors, does it nail on cold start up? I probably would not worry too much about it if the smoke is the only issue.