[v8volvo]

Hmm.

Sounds like either air still left in the lines, or timing far off. Usually even with timing quite far retarded it will still start readily, then sometimes stall a couple seconds later once the glow plugs switch off.

Did you rotate the engine at all with the injection pump belt removed, after timing the cam but before timing the pump? If you did, then you may have timed the IP 180 degrees off. This is possible even if you use the crank markings correctly -- you can time it to crank TDC #1 but cam #1 BDC, or in other words, instead of piston being at compression TDC, it's at exhaust TDC. Often in such situations the engine will briefly fire with residual fuel after a long crank time but then run poorly and quickly die as the residual fuel burns off, just as you are observing.

First step would be to make sure your fuel lines are primed -- you can quickly check that by loosening the 17mm fuel delivery pipe union nuts at the injectors and cranking the engine while watching to see when fuel comes spurting out. If you are already primed then you will see fuel immediately. If it takes a little bit of cranking before any comes running out, then you had a loss of prime and (hopefully) some cranking and bleeding will get it straightened out.

If that is not the source of your trouble, then my money is on timing. First start by taking the pump plug out and re-checking basic timing with the dial indicator again. You are sure you got the zeroing procedure right? I'm not familiar with your method -- it's not the one that I use. My method is to insert dial indicator before setting engine to TDC, then using a 27mm or 1-1/16" socket on the crank dampener bolt, rotate engine while watching dial indicator and go until the needle reaches its lowest point. Set your zero point there. Forget the 2mm setting. Then rotate by hand all the way around until you are approaching #1 TDC. (Your hint for this is by feeling/watching the back if the IP drive pulley, which has a notch in its rear flange. When the notch aligns with the marks at the outside of the IP and bracket, that is roughly #1 TDC, so as the pulley comes around and the notch nears that point, get ready to start watching through the bellhousing hole for the flywheel marks. Make sure you are reading the right flywheel mark as well -- it is not a notch, but a "0" marked into the flexplate, which can be tricky to see especially if there is a little surface rust on the flexplate rim.) As the notch approaches TDC, bring the flywheel slowly around until the 0 aligns with the pointer inside the bellhousing. Once it is there, look at the reading on the dial indicator. Anywhere in the neighborhood of .90-.98 will be a good reading. If you overshoot, you have to either back way, way off (greenbook says 1/4 turn but with an older, slightly sticky IP you need a lot more than that), or, as I do, just go all the way around again, 2 full crank rotations.

If your reading after measuring this way is off, then readjust static IP timing using method of loosening and turning rear cam pulley.

If your reading appears to be on after measuring this way, your next step is to set to #1 TDC and remove the vacuum pump from the cylinder head. This is the quick trick for figuring out whether the cam is at TDC or not without removing the valve cover. If the vacuum pump seems to be coming out under a lot of spring tension, even after you have wound its mounting nuts a significant way off, then you are timed 180 degrees off on the pump. If the vacuum pump is under slight spring tension as you first remove it but after loosening the nuts a bit, it sits loosely on its mounting studs, without tension from the drive rod pushing against it, then you were phased correctly. (The cam lobe that drives the vac pump is bottomed when the cam is at #1 TDC and at full height when the cam is 180 off #1 TDC -- a useful and clever move by the Audi engineers!)

If you find you are timed 180 off, you know what you have to do.

You'll get it figured out! If it ran well before, then guaranteed you will be able to make it run at least as well now, and probably even better. Likely it is something simple. At least you have the good updated Bosch SR97 starter. Someone must have replaced it in the past on your car. Sounds nice and healthy!