Hey, sorry I've missed out on so much of this discussion. I actually was just out in Vegas for a conference a few weeks ago, but didn't have my tools with me anyway.

Your best course is to physically block the EGR, and then a GDE tune or the Yeti tune (cheaper but a bit more involved to get it figured out) to eliminate the code from the computer entirely. I don't know of anyone that has been hassled with the Sasquatch / Weeks elbow kit at their emission testing, but I can tell you what has probably happened: Your EGR valve is most likely stuck partly open, robbing you of boost and causing the surging / smoke until the turbo can spool enough to overcome the leak of pressure. This is a VERY common failure because the EGR is a steaming piece of bullsheet and doesn't seal perfectly even in the best of circumstances.

Now, the bigger questions: How many miles on your CRD and how many of them have been at bone-stock operation with the EGR (even partially) functioning? I have been into the top of quite a few of these engines now, and I have come to the discovery through careful observation that the rockers DO INDEED suffer from the EGR soot, and the more time has passed, the greater the chance that at least some of the rockers have failed because of this un-burnable grit that is being carried by the oil. Doing the rockers is also a great time to do the ARP studs (or vice-versa) and the elbow kit, since the labor overlaps, and I can do the tune at the same time too. A full timing kit is also part of this job, so if your CRD is lacking all of these, then one long day and you will be all set for the next 100k miles (of timing belt) and far more with everything else, and that evil soot monster vanquished.

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Over 225 CRDs currently driving with my valves, timing belt, rockers, or ARP Studs.
Bad noises = REALLY bad things.

I just re-read the thread, and I see that your CRD has about 165k on it, and had the belt replaced around 75k ago, or at 85k-90k miles. That is good, you got a good life from that belt and it is about due again anyway, so you have some time to plan if you wanted to do the full workup.

I can also honestly predict that you will have at least 2-3 broken lifters from running that many miles in stock form. I just got back from reassembling one CRD that was a little younger than yours, and had 5 broken lifters from stock operation. His was far from the only one in this situation, yet still driving around, he just happened to be the most recent.