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Dont use a marine engine, they dont work well in automotive apps. IIRC they run hot on the road. They normally have an ocean full of coolant to keep them cool. 
Here's a brief rundown of a good set-up w/ approx prices:
Get an automotive 4BT
hamilton cam... about $600
24 valve lifters... I paid $25 for a set.
have Brett at Tenn diesel redo your injectors for 50-75HP over stock... about $400.
3200 RPM governor spring... under $20.
Denny T fuel pin... $100.
used hx35 or hy35... $200 or so. (get rid of that baby H1C, at least go with the 6BTs Wh1C with a 12cm exhaust.)
rebuild kit for said turbo...$50.
Intercooler
Fix the KDP.
Tune the fuel pump yourself (theres info all over the web on how to.)
If you keep the cruise RPM down to 1700-1900 (gear it right for your tire size and vehicle weight), with the engine combo above, you should have about 250+HP/400+ ft-lb of torque and still get 30 or so MPGs for under $2000 into the engine work. (I kept the HP and torque numbers conservative, if you tune the pump for more power, it will make more power.... These engines dont know when to give up, they will literally work themselves to death if you over fuel it without enough air to go with the fuel.
Diesel is simple... more fuel= more power. Add more air (or denser air, intercooler), so you can add more fuel without fear of a melt-down.

Here's a brief rundown of a good set-up w/ approx prices:
Get an automotive 4BT
hamilton cam... about $600
24 valve lifters... I paid $25 for a set.
have Brett at Tenn diesel redo your injectors for 50-75HP over stock... about $400.
3200 RPM governor spring... under $20.
Denny T fuel pin... $100.
used hx35 or hy35... $200 or so. (get rid of that baby H1C, at least go with the 6BTs Wh1C with a 12cm exhaust.)
rebuild kit for said turbo...$50.
Intercooler
Fix the KDP.
Tune the fuel pump yourself (theres info all over the web on how to.)
If you keep the cruise RPM down to 1700-1900 (gear it right for your tire size and vehicle weight), with the engine combo above, you should have about 250+HP/400+ ft-lb of torque and still get 30 or so MPGs for under $2000 into the engine work. (I kept the HP and torque numbers conservative, if you tune the pump for more power, it will make more power.... These engines dont know when to give up, they will literally work themselves to death if you over fuel it without enough air to go with the fuel.
Diesel is simple... more fuel= more power. Add more air (or denser air, intercooler), so you can add more fuel without fear of a melt-down.
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