Excessive white smoke that makes your eyes burn is often actually retarded timing. If the cold start handle reduces the smoke then you need to advance (towards the head). If the cold start increases it you need to retard it (away from the head).
A video of how it is running would help.
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I was going to try and get a video and test to see what effect the cold start had on the smoke but then I got a call from my dad who had gone to "make sure it works", telling me that the engine is revving like mad whenever he turns it on. Great, just what I needed now. So I did some quick reading, packed my tools and went to go see the car.
Checked the throttle cable. Doesn't bind and moves all the way back. So it wasn't that. Next, the fuel screws. They had been marked and have not wiggled/vibrated to a different position (They are so rusted I don't think I could move them even if I wanted to). Ok, what's next. Start looking at the springs (the ones that are on the shaft that controls the fuel; is that what's called the "governor"?). They look to be ok, each one is in its place. They were dirty, so my dad sprayed them with penetrating fluid and they aren't binding. I notice that I can twist the shaft clockwise a little bit, so I get my dad to start the car while I have it twisted back that little bit and the revs aren't as bad. I let go, the shaft springs back, engine dies (too much fuel and it stalled?).
In my 10 miutes of reading, I saw a picture where that shaft had little splines on it (but the picture was from an old 1.6TD). Is it possible the AAZ motor has the same splines and that they could have been rusted until we finally got the motor going. Now that it ran, could the shaft have twisted or jumped and be locked in a different position?
The car is being towed away today because our time is up and it has to leave the property. The car is being moved to an empty lot outside our city and diagnostics/repairs will be tough to do. Which leads me to my next question. If it is in fact this shaft, I believe The pump will need to be taken apart and rebuilt. If so, how difficult is this to do and can it be done fairly easily in a field or should I wait till I can pull the car into a shop before going at it?