Your mate's talking out of his hat. EGRs are for diseasels, not petrols... Black smoke on a petrol indicates that it's running too rich (not generally an issue with injector engines but in the old days of carburation it was a pretty good indicator); blue smoke is oil being burned - if it stops when the engine warms up that usually indicates worn valve guides or piston rings. If it starts when the engine is warm, think cracked/warped block or head; white smoke is nearly always water vapour being pushed out - all petrol engines do it when cold, but it generally clears within a few minutes, again as the engine warms up. If it doesn't then you've got water getting into the combustion chambers. I know you've said that the car isn't using coolant but check it regularly when the engine's cold, as checking it whilst hot will give a false idea of what's in the system. Other than turbo oil seals I'd be starting to think the head gasket might be on its way out.
Checked the water level when cold it's fine car isn't using any oil it's running much better now I have put the right diverter valve on less noise but I would rather it run right like it supposed to car was a bargain and it's very solid with good service history
