When I first start my 1999 2.8TD IN the morning there is a lot of pale blue smoke from the exhaust which soon stops and does not happen again through the day.

Next check I'd do is Fuel correct then Spark Plug, if still then Check for a broken or miss aligned ring.
Note:
If the exhaust smoke is blue or gray: Thick blue or gray smoke is an indication of the vehicle burning oil, which means that oil is somehow leaking into your engine'scombustion chamber.
If you have wrong fuel say have 2cycle mix and put in a 4cycle you'll get fouling too.
Hope I helped
Mike

REPLACE VALVE GUIDE SEALS. OIL IS SEEPING PAST THEM DURING EXTENDED PERIODS OF SITTING

does the engine idle smoothly? is the service engine soon light on? the engine is running rich causing the blue smoke.it could be pcv valve but unlikely

Hi Gert, If the smoke is more visible during the period after start up in the mornings, I would suspect the valve stem oil seals have become hardened and defective. The oil seeps in slowly passing the seals from the cylinder head. Sounds as though you need a head job. Regards John

IT IS LOOKS LIKE HEAD GASKET. WHEN THE HEAD GASKET IS BAD WATER GOES INTO THE TOP OF THE ENGINE (COMBUSTION CHAMBER) AND SHOWS WHITE WATER VAPOR AT THE EXHAUST= IT NEEDS A HEAD JOB
ANOTHER OPCION IS PUT A- BLUE DEVIL- HEAD GASKET REPAIR THE SMALL BOTTLE $36.00 (FOLLOW INSTRUCCION S IN THE BOTTLE

Sounds like blown head gasket soery

Helllo there
Symptom: Gray or blue smoke from the exhaust. You notice gray smoke coming from the exhaust when you start your car. The smoke may or may not disappear after the car is warmed. If it is, it is less noticeable. The smoke may have a bluish tint to it. Possible causes:

1. The engine's piston rings may be worn.
   The Fix: Replace piston rings. (Generally not a DIY job)
2. The engine's valve seals may be worn.
   The Fix: Replace valve seals. (Generally not a DIY job)
3. Damaged or worn valve guides.
   The Fix: Replace valve guides. (Not a DIY job)

Symptom: Engine uses more oil than normal, and there is some smoke from the exhaust. The oil level is low between oil changes. It appears that the oil is being burned by the engine because of the smoke in the exhaust. You may or may not notice the engine doesn't have the same power as it used to.
Possible causes:

1. The PCV system is not working properly.
   The Fix: Replace PCV valve.
2. The engine may have mechanical problems.
   The Fix: Check compression to determine engine condition.
3. The engine's piston rings may be worn.
   The Fix: Replace piston rings. (Generally not a DIY job)
4. The engine's valve seals may be worn.
   The Fix: Replace valve seals. (Generally not a DIY job)

Water vapor coming out of the exhaust at initial start-up is normal; that is condensation that collects when the engine is not running. White smoke at start-up depends on a couple of things. Tell me, where do you live? When the weather is very cold, all engines will emit steam (white smoke) when they are first running; this stops after the engine has been running a while and is warm.

In short, if this is only happening at first start of the morning and goes away over time, there is nothing wrong.

If, however, the "white smoke" continues and never stops, you may have a blown head gasket.

this guy is wrong. Black smoke means to rich[to much fuel]. Your motor is not shot. Something is wrong with the engine management[sensor]. White or blue smoke is a fatal problem.

This could be as simple as the EGR (exhaust gas recycling) valve stuck open. This valve is supposed to open at a specific time, recycling the exhaust gasses back through the engine. If they stick open, the engine is not getting the correct air mixture to burn the fuel efficently, causing black smoke and lack of power. Have the garage remove and blank off this valve. If it runs ok, then a new EGR is needed.

TL