Diesel Bombers - 12v problems! Help! Lol

Ok heres a little background. 93 ppump 12v out of f700. Swapping complete motor into my truck. Had rough idle,fuel leakage, breaking up and popping when revved. Fixed leaks and installed airdog.
Current problems.
1. When put into gear idle drops real low and surges and if you hit the throttle and let off truck dies.
2. When revved truck breaks up and pops and puffs white/gray.
Checked timing. Pinned pump and looked thru tdc plug hole with camera and the pin hole is centerd in the hole so timing hasnt slipped. Was gonna advance timing but the delivery valves are larger than the dial indicator holder for some odd reason? Thanks in advance for the help?