Thanks for the great answer! I have taken this as a project to get the most out of the NA diesel engine. I made a new header for the car already which should help with exhaust flow.
I also turned it up today, maybe too much because of the smoke but I can feel it pulling noticeably harder above 2000 rpm.
Because of your answer, I decided to leave the max rpm alone.
I have driven the car extremely hard for over 6000 miles now and it seems to be taking it.
I'm trying to get some more miles out of the engine because I'm planning on porting the head and don't want to waste the new head gasket by swapping it whenever there is no need for it.
I'm also pretty sure that at least 1 of my valves aren't sealing properly so I am going to be fixing that at the same time.
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