You seem to have a few things going on here. Here the questions you need to answer to help those much, much more experienced than me help you out.

Did this all happen at once?

Does the engine shake when cold, or just warm?

Hows the starting?

Hows the power above 1000rpms?

Have you really just started ULSD? Most folks have been using it for at least a year now, if not two. I think at least for 6 months its been all thats available.

I have some similar symptoms, minus the wet injectors. thats probably weeping return lines - easy and cheap to replace.

You will want to verify if there is indeed fuel in your oil. I do not know how to do this, someone will have to chime in. I have heard of the fuel pump failing and fuel making its way into the oil in large quantities like you are describing.


After checking into the fuel/oil situation, the first steps are:
-check you valve clearance
-check your timing chain stretch
-check fuel and air filters
-diesel purge

And go from there. Hope this helps...
dd

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'85 300D, 'Lance',250k, ... winter beater (100k on franken-Frybrid 3 Valve Kit)
'82 300D, 'Tex', 228k body / 170k engine ... summer car
'83 300TD Cali Wagon 210k, wife's car