I have a 1991 200 tdi defender that I just rebuilt. I added a air water intercooler and a vnt turbo. I live in Canada so before I pulled the engine I ordered all my parts from the uk not knowing my head gasket size I ordered the 0 hole 1.69mm gasket. My question is simple can using a gasket that's too thick cause alot of gray smoke from unburt Fuel do to low compression? I don't think it's a timming problem because advancing it or retarding it makes little difference. And all the valves were cut head was skimmed valve seals replaced new rings, new injectores.... I dont believe it's over fueling because that would be black smoke i beleave? No oil buring or coolant missing Defently not steam so don't ask. And there's no air leaks that I can see in the injector bleed offs

Oh and I feel like I'm a bit short of power but I do have fuel pressure thoughtout the system...

Sorry my writings all messy sent from the cab of my 110 8000km from home in a parking lot. sent from my I phone!

no it shouldnt make it smoke !! do a compression test . check valve clearances . pump timing . is your injection pump in good order !! injectors pop tested etc !! turbo all good etc! is it possible someone messed with the inj pump ?? check to see if the metal seal is still on the full power
adjuster ! diaghram in good order ?? fuel system got no leaks ? filter clean ? fuel good !!!!!
good luck!!

Smoke should never be Gray either.

Grey maybe, but Gray never .

An emission test will show up head gasket failure ! Just because its new don't assume it can't fail !! It's easy to pinch it or even get it trapped and damage it whilst fitting the head !! Is there a large amount of pressure in header tank ! Any bubbles when she's running ??
Is it possible that your exhaust could be contaminated with oils etc ! From earlier engine problems !!
Contaminated fuel maybe !! Keep searching the truth is out there !!! Grey like my hair !!!!!!!!!

Thanks for the reply I now that I know it shouldn't smoke from the thicker gasket I'm now looking at the pump setting it's been tuned up but I've never seen it smoke grey from ajustments only black smoke? And everythings else is in good order timing should be bang on checked a few days ago and fuel and exhaust are both good the head gasket might be shot and eating oil but I can't tell because there is an oil leak Comming from the belt pulley pivot in the timing case :/