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Sounds like your turbo probably died. And if it died hard, stuff might have gotten into the engine through the intake. I would pull the turbo first knowing this information now.

Oh, I missed the part about the black smoke from under the hood- did you check the engine over really good? no cracks in the block? Also, if it happens to be turbo charged, check your turbo. That going bad would cause your ills too.

Started smoking really bad and making horrible noices? but ran enough to get it back out of the woods? What engine is in a M54? A multi? We had a small locomotive that did the same thing- had an old cummins engine in it. Running along just fine than WHAM bang bang bang Black smoke like an old...