It would be highly unusual for a 560D to have only 1400 hours. Are you sure the tachourmeter has not been changed? 1400 hours since a overhaul would be more normal.
The starting and white smoke is normal on these engines in you do not hold the glow plugs on long enough. When starting you need to keep the glow plugs energized until the white smoke goes away. Sometime you have to give them another shot before the will stay running without the smoke. If you have one cylinder that doesn't clean up even though the glow plugs are kept energized you may have a bad glow plug.
It is always best to trouble shoot the engine problems before you tear them apart. It can make the job much easier if you know what kind of problem you are looking for.
I would start by rocking the crankshaft back and forth to see if you can hear or feel the knock. The next step would be to remove the oil pan to see if you can find the trouble there.
One reason I would suspect that the engine has be overhauled is what you describe sound like a broken crankshaft. Unfortunately that is not too unusual, especially on the early engines. Early diesel crankshafts were not regrindable. Early gasoline crankshafts were not to be installed in diesels even though they will fit. In either case if that is done the crankshaft will break.
I've been much more cautious of any knock in those engines since I had one to work on with a slight knock. I thought I would just idle it into the shop, about 200 feet. I got about half way when two rods and a piece of crankshaft exited the block. At that point it was obvious what had been causing the noise!
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