the white smoke is probably the ATF burning (if you used any). the diesel wont evaporate, and you dont need to worry about the fumes exploding, that only happens with gas. the little pump only primes the IP, the filter has to be filled manually. i have a self-priming IP so i dont know how many pumps it takes, but it sounds like it takes at least 100 or so.

there should be a little round rubber nub about 1 inch in diameter about 6 inches behind the front wheels and 6 inches in front of the rear wheels (at least there are on the 124) these are the jack points for a floor jack. there are separate holes for the spare jack that came with the car, but i dont think i would use that jack to get under the car, i dont trust it that much!

good luck

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1991 300 D 2.5 Turbo, 220k
also in the family:
1981 240 D 185k
1991 350 SD 185k
2006 S 500
2005 SLK 350