Engine doesnt seem too bad, diesels rattle. But it is smoking way too much, its not cold enough for it to be like that. I guess it warmed up there recently.
Probably has something to do with the timing of the IP. I would get as much info about how the IP is timed and how the cold advance works. If the cold advance is working then disable it and see if it clears up, likes its too advanced, and base timing is too advanced. If its not working then force the power to it and see if that clears it up, which could show that it just needed cold advance, or maybe base timing is too retarded too.