funola, I have done a bit of reading on this. DevilsOwn warns to use a good nozzle and make sure you're getting good atomization. I found one description of actual damage here: http://www.key-ideas.com/2ndWaterInjection.htm

Basically, the guy threw together a system with a homemade nozzle and after running it for several months, took apart his compressor and discovered it looked sandblasted. Well, for my short term uses, I'm willing to take the risk. Kinda like the "Italian tune up," if you ran everywhere full throttle all the time, you'd wear your engine out in no time, but doing it once in a while cleans the system up and makes it run better.

Well, in hindsight, I think the Marvel oil soak I did was more efficacious than the water injection, but its hard to say. Maybe it was the combo of loosening with the marvel, then cleaning with steam. Regardless of which was responsible, my blow-by and oil consumption have dropped off significantly.

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'82 300SD - Somewhere over 220k - Becoming reliable...

You could do the below by instilling the Oil through the Glow Plug Holes after the Glow Plugs are removed. It is cheap and does not cost much to do. The detraction is that you should let your Car sit for about 1 week (I did 1 week + 3 days and got + results).
But, you can do it without much more complication that rigging up a Funnel with a skinny hose to go into the Glow Plug Holes or if you want to remove the Injectors just dump the Oil into the Prechambers when they are out.

Marvel Mystery oil results sticky rings
Original thread also has + response
Compression Test...how low is low.....

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84 300D, 82 Volvo 244Gl Diesel

Thats exactly what I did, I just did water injection as well. I don't know which gave me such good results, or if it was a combination of the two. What I do know is that it runs much better now.

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'82 300SD - Somewhere over 220k - Becoming reliable...