when i had mine was having some of the same symptoms i ended up having a hole in a cylinder wall, i hope this isnt your luck, but something to keep your mind on.

 

should be a mark on the balancer for the pump to be set at or a certain degree. at the same time cylinder 1 should be on compression. seeing how its still running, the pump is still firing cylinder 1 in the available window. what im saying is it could be too far advanced or retarded in that window (ahead or behind a couple degrees where it shouldnt be).

i doubt this is the issue i think its just injectors but what the hey..

 

no way to properly set injection timing without a timing meter or a ferret adapter on a timing lamp. just lining up the lines doesnt mean ****. it will run, but not properly.
DO NOT TURN THE PUMP WITH THE MOTOR RUNNING!

 

ok your right, to be honest i've never set timing on an 7.3idi. just a dt466 idi (old school) i thought it would be similar

 

ya know i just went through hell with my truck and it ended being a small crack in the fuel line....... ran through my fuel system ... new lift pump ... new return lines .... bu noticed i was getting air in filter..... replace the lines and u can use fuel injection line if your not running bio-diesel... more that 15-20%..... i bought Gates barrier line bio-diesel ready .... cheeper than trowing a ton of cash at it hoping to fingd the right combo..... start small people use your diag skills... not always a fking injector and pump..... get old reading the same stuff

 

your saying a fuel line from the tank to lift pump?

he is complaining of whit/grey smoke and rough idle/runnning conditions. which means (smoke color) raw/partially burned fuel. so its not starving or getting pumped full of air. he's most likely got one injector thats opening too early before it reaches the right pressure.

 

started pulling motor apart to check head gasket and found the valve cover gasket i pieces and one of the return spring bolts loose. new parts on order so hopefully problem solved