Since I haven't been able to get any help from relevant BMW forums, I'm trying my luck with you.
My 1996 E36 325tds Touring with 86,000 km starts after one glow plug cycle and 2-3 seconds. It then runs roughly for 1-2 seconds before settling down. If I use the glow plugs twice before starting, it starts without any problems and runs smoothly. When starting a warm engine, I always have to crank it for about 3 seconds before it starts.
Otherwise, the car behaves normally. When starting the engine from cold, it sputters for a bit, then emits a black cloud of smoke, and then nothing happens. There is no smoke or exhaust during normal driving.
Oil consumption: 0.1 liters per 1000 km. Coolant consumption: zero.
I have absolutely no knowledge of various BMW diesel engines, but it looks very much like the injection timing of the ESP (Electronic Solenoid Pump) is misadjusted. For starting, the pump needs a correct basic setting because the injection timing control is not yet active.
Okay, so please check the basic settings of the ESP (I'm assuming it has ESP, given the year of manufacture, 1996).