First off, I don't think it is your battery. If your battery was bad, your starter wouldn't engage. I assume your starter is spinning like it normally does (unless it is now magically super slow).
I'm going to say glow plugs are the issue. I've seen a 200TDI crank at 5F without any other starting aids. I think if ambient is at 15F or higher, you don't need a block heater, etc. That said, they do make a dipstick heater that would be quick and easy to install.
Overall, I feel like something is wrong with the glow plug circuit because it sounds like NONE of the glow plugs are working. I would recommend getting out your test light and seeing if there is electricity even getting to the glow plugs. Start there, and then work your way down.
As for the fuel and water bits, look for your fuel filter. It'll either be on the firewall in the engine bay or in the passenger rear wheel well. Look for a spin-on oil filter with something that looks like a wheel at the bottom. Get a bucket, and turn the wheel. It'll drain out the water. Drain until you see diesel.
Also side note, it never hurts to change filters in a diesel. They like fresh filters. Oil. Fuel. Air. Don't be shy about replacing these.
Yeah the diesel 911 seems to be a good additive. Helps clean out crap. There was another additive I remember that helps remove water from the tank and gets it trapped in the filter. Its been years, but it is also a good one.
If memory serves, the 200 and 300 TDI are self priming. So if you want to re-prime the system, use your ignition key. That should help make things easier.
Speaking of fuel, how old is the diesel in it? If its older than 6 months, it probably isn't helping. However if its within a month, then its probably fine unless you pumped some bad ju ju at the station (which happens).