Im banking on delaminated head gasket - gasses through the composite gasket at pot 2 or 3 to the water jacket.
If it blows a ballon up at idle when cold I wouldnt imagine you wouldnt smell too much other than air... at idle the engine is pumping mostly air. Bugger all fuel being burnt to smell combustion products.
The only thing I dont get is you say thermostat removed, driving around temps start to climb after only 10 minutes... seems quick in my experience of limping head gasketted 300tdi s. With the thermostat removed 10 minutes is pretty quick - unless you are pegging it up hill.
Can you directly measure the actual water temperature in the head - factory gauge is not reliable.
The water in the resevoir really only has a direct connection to the main flow from the bottom hose, if there is a water restriction in the block or pumping problem the water in the head (where the factory sensor is) could be boiling but not circulating enough to increase the temp in the resevoir.
I like Davids idea of running the bottom hose and top hose from a big bucket just to check on circulation.
Steve
'95 130 dual cab fender (gone to a better universe)
'10 130 dual cab fender (getting to know it's neurons)
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