Sounds like it could be one of many things.
The blue smoke is normal at start-up, but the white is not. It should blow blue smoke for just a second, and then clear up at idle. Or, if you have a cold-start lever (and you should) then it should not blow much blue smoke.
White smoke generally means blown head gasket (see below).
The oil coming out of the dipstick is dieseling. It means that you have excessive blow-by, OR, your PCV valve is clogged. Have you ever changed it?
I'm not terribly familiar with the GTD. I assume it's just a standard 1.6 TD with an intercooler and a bigger turbo. Either way, it should have a PCV valve, which routes engine blow-by into the intake (i.e. turbo). Pull the tube that leads from the PCV to the intake boot and see if you can feel the air pressure from the crankcase coming thru. The results listed below will tell you what is wrong:
1) If there is no air pressure coming thru, then the PCV valve is clogged and is forcing the air out of the dipstick. I just discovered this trick on my 1991 Jetta 1.6 TD. This could also affect running. If you're getting too much vacuum or not enough, then the boost aneroid on the top of the injection pump could be making the fuel ration too rich/lean. Check the line to the boost aneroid and make sure that it's free of debris and uncracked.
2) If, when you pull the PCV tube off, and you see plumes of white smoke come out, assume you've got a blown head gasket.
3) If there is no white smoke, but LOTS of air and oil being spat thru, then your rings are bad, thereby causing excessive blow-by, which in turns blows oil out of the dipstick tube, and INTO the turbo. This oil in the turbo could also explain the poor running and the black smoke.
Another possibility is that your turbo is bad. If there is not enough air getting into the motor to combust the fuel, you will get black smoke at low RPMS. So, you may also want to check your turbo for shaft play and confirm that the impeller and exhaust turbine are spining sumultaneously.
If the car has low miles, then the problem is probably the PCV, or a blown head gasket, so be sure to check for coolant loss, or oil in the coolant overflow tank.