[T3] E10 ...

[Gary Forsmo]

 It created a LOT of
smoke.

I have no idea if it actually did any good, but the smoke probably
had a lot of oil in it, and that might have coated the exhaust like
you say.

Using diesel to "lay up an engine" sounds like "fogging" a 2-cycle
outboard motor for winter storage.
------------------------
On an outboard, run the engine at a fast idle.  Make sure you have
cooling water, either by having the engine in water or have "muffs"
hooked to the engine water intakes.
Disconnect the fuel line from the engine.
As the engine consumes the fuel, spray the "fogging oil" into the
carb.  Lots of smoke as the gas and fogging oil is burned.
When the engine stops, the internals are well lubricated ... "winterized".

Gary "Frito" - '69 Variant, FI, MT
Rockport, TX (winter)
Lake Geneva, WI (summer)