I know this looks like I am replying to my own post but this a reply
from my newletter this morning. I found these links to be very
helpful. I thought I would pass this along to others with diesel
issues.
Brian Rodgers
Hi, Brian-

I am not much of a mechanic. That disclaimer being issued, let me say this-

White exhaust smoke can be and often is a symptom of a blown head
gasket. White smoke can also be symptomatic of oil burning. White
smoke from a blown head gasket is actually steam produced from coolant
entering the combustion chamber(s). When you fired the Peugot up the
first time, I put my hand in the white exhaust stream. It did not feel
particularly humid, which it would if the white were due to billows of
steam being produced. As I recall, the pungent stink of burning
anti-freeze, which would be present if coolant was exiting the
exhaust, was also missing. Moreover, in my limited experience, the
white smoke from a blown head gasket does not go away when the engine
warms up.

Are there alternate hypotheses which would account for ballooning
coolant hoses and white smoke on start-up? I can think of at least
one, and I am no diesel guru. From what I recall of your coolant
system, there was some conspicuously bass-ackwards backyard
mechanicking done. E.G, The thermostat housing was entirely absent and
the thermostat was jimmied into one of the coolant lines with hose
clamps. So, it is at least possible that the hoses are ballooning
because the coolant flow is obstructed either by crud deposits or by
misadventures of improvised repair. If this were the case, I would
look to the white smoke as being non-combusted fuel or possibly oil
burning on start-up, unrelated to the coolant issue. Diesels often
generate white smoke on start-up due to non-combusted fuel. Diesels,
particularly those run on dino-diesel, are also prone to building up
carbon deposits which can in turn cause low compression and even
oil-burning due to loss of ring seal. Either of these could be your
problem with the white smoke. If the problem is carbon build-up, it
can often be addressed by running a can or two of diesel-purge
directly through the injectors (not added to the gas tank) and driving
the beast pedal-to-the-metal for a few thousand miles.

See here-

http://www.peemac.sdnpk.org/resource/fert/tips5.html

and here

http://www.intellidog.com/dieselmann/idi2.htm

For info on diesels indicating that white smoke on start-up is most
often caused by non-combusted fuel, low compression, etc.

Not trying to be a know-it-all or tell you what to do, you are after
all much more experienced with auto repair than am I. I have learned
though, the hard way, that the road to simplicity and bliss in such
matters lies in eliminating the easy stuff first. So maybe a prudent
first step would be to restore the coolant system to its proper state,
replacing the thermostat housing, checking the thermostat, flushing
the system, checking how the lines are routed and replacing them as
appropriate. You would need to do this at some point anyway. If this
takes care of the coolant issue, then you will have saved yourself
many hours of unnecessary aggravation.

Regards,

Lee

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