I can't really comment on the smoke on overrun, but it's likely that the poor starting is probably due to the dynamic timing being a bit off. In practice, unless the weather is seriously cold, the glow plugs have little impact on the car's ability to start.
My 1998 Tdi auto (same engine) only struggled to start when the temperature got to below -10 degrees C but otherwise started first turn. It wasn't until I removed the cylinder head to repair the aftermath of a broken cambelt, that I discovered all 5 glow plugs were completely dead and probably had been for years!
After repairs were completed and new glow plugs fitted, I can't say it's made the slightest difference to starting in normal winter conditions.
For obvious reasons I'd suggest replacing the belts and tensioners asap and you'd normally do the dynamic timing at the same time when the new belts are in place. My guess is that this will probably resolve the starting issue.
Martin
1998 V70 Tdi Auto 224,000 miles
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