I suspect your MAP is faulty, it's the only thing that controls fueling on the CRD.
The lift pump shouldn't have any affect on rail pressure, it's only supplying a few PSI to the high pressure pump inlet, the pump is internally regulated on the supply side and rail pressure is controlled by the ecu, you will see the pressure sensor in the fuel rail.
I was wondering about overboosting because of your bulging hoses, what happens if you pull the hose off the turbo actuator solenoid with the engine running? The arm on the turbo should move when the vacuum is disconnected.