If those numbers were from right after it was put together then they sound about right. You need to put at least 500miles on them to get the rings seated and "broken in" properly.

"When i take off the oil fill cap it puffs like a choo choo train"
That's not *always* a bad sign. I know quite a few MB diesel engines that have blow-by like that and run very well (My 320K mile engine, for example, can still start without a block heater on 0*f days). All engines are going to have some blow-by no matter the age, miles, or design.

"the exhaust tail pipe has a thick coat of soot as well"
Part of the diesel life. I can't think of a pre-2002 diesel exhaust that has no soot in the tailpipe.

"I adjusted the rack bolt but no difference."
Is the rack damper a kind of gold color? If it's not, it could be the old style with a weak spring. What RPM do you idle at?