Sounds just like the accelerator lever is not indexed to the shaft correctly. Pull the lever, rotate the shaft CCW until you feel spring tension and then let the shaft return gently. The return spot is usually 1 spline too far for idle.
WINNER!
I've been gone for two weeks and today I went to start it...instant start. So I pull the accelerator lever and it was WAY off.
So I removed the lever and got it running. When I rotated the shaft I noticed a dead zone and then it TOOK off!!! Yeah...run away diesel!!! After it ran away on me two times I decided to pull the max fuel screw back. I had it set at the factory stop but for all I know it wasn't the factory screw/stop. So after I pulled it back and turned the shaft...I got it running again.
After messing with the fuel screw, accelerator shaft and idle stop, I had it idling and revving perfectly. A quick trip around the block and it ran PERFECT!!! Still pours a cloud of black smoke so I'm sure I could pull the fuel back a little more too. I'm just so damn happy it was such a simple fix.
This car/motor was never bought to drive but damn...I can't see myself ripping it apart just yet since it's an early westy, diesel, has a/c/heat and runs like a scolded dog!
Thanks everyone,
Jason