The thread's a bit old; hope it's ok to revive?
I also found this swap via a Google search, planning my own diesel swap. What you've done looks like a good, clean installation. My hesitation to use an OM617 - weight and fuel economy - seems largely solved by using the later OM602. However, info is much harder to find for that engine, so I have some questions for the OP:
How long is this engine, and do you think that it could be squeezed in without chopping the radiator crossmember, perhaps if there's no internal fan?
You mention that the oilpan hits the "trailing arm". Do you mean the stock tierod? In one of the photos, it looks like the engine is mounted quite low. Do you think there's room to mount it higher, closer to the hood, and not have to do a lift?