Frank, let me help you with your questions regarding the diesel engine in aircrafts:
I’ve discussed with the experts on the Diamond DA40/42 Diesel here and found out the following: due to the fact that both engines, the Diesel and the Gasoline engine, are burning machines, there are no big differences in the burning processes. The only advantage of the diesel engine is that it has no critical altitude compared to the gasoline engine. At the critical altitude the burning process in a gasoline engine becomes explosions and therefore “knocking”. You will understand that the performance will be not so good then. The diesel engine has no critical altitude.
But why does Diamond install diesel engines on the new aircrafts? There is no real reason to do so in the case of performance. Also the problems introducing a “new” technology are great. Very! The reason to do this all is an economical one: the prize of the fuel. Diesel engines run longer on the same amount of fuel and this fuel, Diesel or Jet-A1 Kerosene, is a lot cheaper here in Europe.
You found out correctly that Thielert uses an engine from the Mercedes A-Class. Of course it is modified to aviation needs. And it has an electronic injection control. This allows, like on the car, to inject the needed amount of fuel several times per second to allow a better burning process. And it has its turbo.
It is quite complex and not so easy to explain it in short time to the full extent. If I’ve finished the training manual for the DA 42 I think I should send you one. But don’t let my boss know.