[v8volvo]

You are right, it does not sound too healthy.

When you set the injection timing, did you first disconnect the cold start advance? If you set the timing using the dial indicator but leave the CS connected and pulling on the lever, then your actual static injection timing setting will be incorrect (retarded by about .25-.30 mm), and the engine will run poorly with some of the symptoms you are seeing.

In your situation, you cannot assume anything -- it would be a good idea to verify valve clearances, etc for yourself. Start by pulling the valve cover and checking valve clearances and cam timing. Adjust both if necessary. Also loosen your timing belt -- it is too tight! I can hear it howling in your video. That is not the cause of your running problems, but it could cause other problems. Reduce the tension a bit . On a cold engine, the belt should have some visible slack. Should not be taut.

On a D24T a while back, I had some strange starting and running issues similar to yours that were traced to a faulty injector that was allowing exhaust to get pushed into it, causing the injection pump to fill up with air. If you are doubly sure that all adjustments of timing, valves, etc are correct, then your next step will be to take the injectors out and have them tested by a reputable diesel injection shop. Plan on a compression test while they are out.

You'll get it figured out!