Check condition of idle control valve hoses -- if hard, replace, and also check the boot between fuel distributor and air flow meter horn. Leaks here will drive you nuts, car stalls and won't start, won't start hot, won't stay running, etc. Im almost certain you have a serious air leak (make sure the idle control valve hose is actually attached to the boot between air horn and throttle body! -- this is the only way you could get a puff of anything under the air filter housing.

You probably should also check the injector seals, as leaks here will also make it idle badly and cause starting problems -- just spray a quick squirt of brake parts cleaner on the injectors while it's idling. If the idle smooths out, that seal is leaking.

Just did this on the TE, it runs properly for the first time since I got is 5 years ago!

Glad you survived Iraq, thanks for serving over there. If you take a Geology course at Austin Peay you will likely have my brother for a prof!

Pete

__________________
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!