Randy,
The short answer is no, a DD 2-stroke mixes no oil in the fuel. It is similar to a 4-stroke in that regard, but similar to a gas/oil mix 2-cycle engine only by the lack of a separate exhaust stroke: they have a port in the cylinder wall for exhaust, and a "blower" (which some people refer to as a supercharger) to expedite that process.
Aside from the evacuation blower/supercharger, a "TA" (turbo, aftercooled) engine like the 540's also has traditional turbochargers to compress incoming air.
:smt017 I am now confused....but I think I might have it. The Diesel 4 stroke is similar to the gasoline 4 stroke other than the obvious like spark plugs and compression. The Diesel 2 stroke is similar to the gasoline 2 stroke other than the lubrication aspect of it.
What would be the advantage of a diesel 2 stroke over a diesel 4 stroke?