I was going to ask about that... Does it clean and lub the injection system?
Actually, it used to be the standard first step injector treatment. The changeover to low sulfer diesel in October 2008 has kind of changed the thinking a bit. Low sulfer diesel is not considered as lubricating as the old diesel and some fear gauling of injector parts when used with ATF which is quite non-lubricating.
Actually, a little bit of carbon in a diesel head will actually make the engine run better. It glows to incandescence and "sets off" the ignition of the next cycle. But too much can get in the way of proper injection/combustion.
But ATF is dandy for removing carbon from around injectors.
I still use it, but don't make a habit of it. Maybe throw in a quart on 10 gallons once a year. Now have 7 years and 95K miles on the car and never changed an injector.
I don't know about your smoke problems but it sounds suspiciously like it might be simply cold oil. Or a little too viscous oil for start? You may be getting ring skid until the oil thins out a bit? Synthetic oil might be a solution since it holds viscosity better: go to a slightly thinner synthetic and as the oil warms it doesn't change viscosity as much. But some people report problems with synthetic oil since it is more "slippery" than regular oil. (i.e. some cars when put on a diet of synthetic will suddenly start to burn oil.)
Your mileage may vary. Test course driven by professional drivers. Don't try this at home, bla, bla, bla.
Joe