Good News!

I had changed the injector timing belt over the winter and found out that if the timing is advanced the glow plugs can deform and even break. I spent the day at the marina, taking off the main engine pulley

and marking everything. I finally took off the timing belt and moved the injector pulley counter-clockwise one cog; thus retarding the timing. I put the belt back on, along with everything else and started her up. It was immediately evident that the motor was much quieter and the soot and smoke (which I thought was "normal" for a diesel) were gone! I let her run for an hour and checked a glow plug; looked perfect so I took her for a cruise. The noise has dropped at least 50% and she is faster, cruising efortlessly at 7.5 knots. As my late dad would say "Everyone deserves a day like this sometimes."
Thanks to all.