I do not think this is the usual head gasket failure on these. Milage and age wise it is due for one though. Usually the front oil passage breeches in the gasket creating smoke. Oil in the coolant could be the fuel pre heater and I assume that car has one.

Since you also have a Miss I would test things before puling the head. Also make sure the glow plugs will remove or deal with any that will not when the head is off.