Thanks for the input everyone.
I did remove the injectors a few  months ago and had them tested at TWO
different Diesel shops, both of which said they were fine. There was nothing
wrong with the way the motorious ran except the smoke, it seemed to have
smooth power considering it's a VANAGON.
I don't get jiggy with disassembling blocks so I will take it to a rebuilder
and get the short block for 780$.
Still soliciting insight into the black spot on cylinder wall though, so
anyone who can tell me about this is invited to respond.

Gnarlodious