It's the D4 pump that is making your oil level to rise and makes the car fail to run 
If your vehicle is mixing oil with fuel, where your exhaust gets very smoky, it usually means that the Piston rings are worn out and not sealing the motor oil from the combustion.
You should send your vehicle to a mechanic for diagnosis and repairs.
To find the exact cause you will need to get the car plugged into a diagnostic scanner.
Changing the head to a 3S one could be done but will require more than just the head, you will need to change ECU, Wiring, Exhaust, Inlet plus more. The D4 model is completely different to the standard one.
So what you saying is it's hard to start cold right? Something in computer system not allowing excess fuel to injectors when cold. Probably sensor Get auto electrician to sort it out otherwise you end up replacing things that there is nothing wrong with They got the right gear
SOURCE: Toyota Nadia D4 1998 model: What causes petrol
normally the only way for petrol to enter sump would be past pistons/rings.so either the bores or rings are badly worn or you have a bad problem with over fueling or both. is your vehicle injection or carburetta. If possible after being driven when vehicle has been stationary for about 20 minutes if possible see if inlet manifold has any petrol sitting in the bottom . If it has an excessive amount it may be worth checking injectors/carburetta for leaks as both should shut down all fuel supply when engine has stopped. Obviously all safety precausions must be taken whilst checks are carried out ie, key out of ignition,no flame of any kind present ,etc. good luck.
SOURCE: nadia D4. what are the causes of high fuel consumption?
Tune up parts, bad coolant temp sensor, dirty air filter or MAF, restricted exhaust, bad cat converter, faulty O2 sensors.
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