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how can if fix peugeot 306 xldt 1996 loss of power?

I have a 1996 1.9 diesel peugeot 306. It has suddenly developed a fault and is difficult to start, runs uneven and has lost power esp above 3000 revs. It also uses extra fuel and blows out grey somoke. Any ideas?????
Ian Patilla, March 2010
link Click here to see other fixes for Peugeot 306 XLDT.