OK so if it used to start and run reliably when parked due to only a leaky waterpump, we can presume the glowplugs are still functioning and the IP is timed correctly.
I bet it would start if you squirted a teaspoon of motor oil into each combustion chamber. 12 years is a long time to expect whatever oil was helping to seal the piston rings to still be there.
Here's an idea: Remove the front four glowplugs (the easiest), test them to make sure they're good, and while they're out, give a couple of squirts of motor oil from an old-style oilcan with a long skinny nozzle into each glowplug hole. Button it back up, and try starting with a charged-up strong battery. 20 sec. cranking, let it rest one minute, try again.
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1985 744 gle d24t
1985 745 gle d24t
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