The "puffs" coming out of the oil fill is NOT a good sign. That is compression (see my post above,
@treegump, about cylinder wash down from bad injector(s), cylinder wear and blow by) blow by past the rings. You keep describing how, on several attempts, the engine seems to try to "catch" but not fire off. I am going to go so far as to say that what you think is the engine trying to fire is instead the engine hitting the cylinder(s) that have (more) normal compression than the others as you're cranking it over.
Again, before you start throwing money/time/labor at this critter, remember the three things you need for a diesel to run, 1) Fuel (you seem to have plenty and it is getting to the injectors, whether the injectors are any good and they are spraying, not pissing, is another issue in itself) 2) Air 3) COMPRESSION!!!
Pull all eight glow plugs, get a DIESEL compression tester (gauge goes to at least 400 psi) with an adapter for the glow plug holes. Do NOT put any oil into the cylinders when testing the compression! You should have a "normal" reading of about 325 psi per hole with no more than about 25 psi variance between the high and low cylinders with a healthy engine.
Cylinders below about 230 psi won't make enough compression to fire off on their own when cranking it over and indicate either very worn rings/cylinders or valve(s) not seating and sealing.
Before you start chasing rabbits down holes, you MUST have all three for a diesel to start/run, fuel, air and compression.
You may be discovering why this was such a cheap find. The PO had worn out injectors in it, they washed down the cylinder walls, compression went bye-bye, beastie wouldn't start, PO threw some money at it in diagnosis/parts, still wouldn't start/run, PO decided to dump it on Craig's List and make it someone else's headache/money pit.