You mentioned previous leaks where the oil return lines enter the pan. I had an '85 300SD with the OM 617. I had a lot of leaks in that area also. What I figured out was that crankcase pressure was too high. My engine was apparently blowing by quite a bit.
The breather tube that went from engine to the catch can in the air filter housing was very restrictive. It was a flat profile tube so it would fit under the hood in the car. I was able to replace it with larger rubber hose and that made the difference for me. The oil leaks stopped completely.
Engine still smoked.
Just mentioning this as a reminder to watch crankcase pressure as your engine ages.
I had considered using that engine in my 93 Ranger. But the rebuild cost was way too high for me. Rebuild kit plus finding transmission adaptor, engine mounts, and everything else to make it work just seemed too expensive for my taste. Finally sold the car last.month.
Good luck. I'll be watching this build since diesel is what I really wanted to do.