See below for a sensible answer.Well that got out of hand.
Still hoping for a coherent answer to my problem.
You can map a diesel engine too much. There's only so much air the standard turbo can supply. A diesel makes more power by adding more fuel. However extra fuel is only any good if there's sufficient air to burn it. Black smoke suggests that the maximum useful fuel increase has been exceeded. This will give rise to poor Mpg and possibly accelerated bore/ring wear.
Just a thought.
Has the EGR valve been blanked? If not, the valve could be lifting off its seat under boost, diluting the incoming air charge. This can give the same effect as to much fuel.