They do smoke when you rev them hard, it is normal! (I actully own one). They shouldn't beltch out too much unless they are under load, then they should smoke nicely in a sort of blacky/grey colour clearly visable in folowing headlights but not so rich it obscurs everything in site. On the flat or at constant speeds it shouldn't be bad and shouldn't smoke on overrun.
If it smokes black all the time, or doesn't smoke black/grey enough then the pumps out, if it smokes under load and when being accelerated its fine. White/blue smoke when warm isn't good eather, white when cold shows heaterplugs are past their best or not used long enough.
Remember its a 1960s design, a mild reworking of the first high speed diesel engine made in the UK (Rover 2.0 diesel) so its not modern, easy to expect more in our modern world of computer controled particulate filtered comonrail catalised TDI engines.