Low compression and late injection timing, probably a result of worn chain.

You must check the chain stretch and replace it if beyond specs (8 degrees) before diving into anything else.

This looks just like the 220D on a bad day -- some blue in there, too, probably bad valve seals.

Cold running s a bad thermostat. Replace it, make sure you don't have a coolant leak, and drive the ..... out of it for a couple hours. This will improve the condition of the prechambers considerably.

Get some RedLine and run through it too -- if the knock goes away, then comes back, you probably have worn nozzles, too.

Peter

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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!