Thanks for the tips. Unfortunately, things just got worse.
There is no oil in the engine and the spark plugs are covered in oil. I basically accomplished nothing.
I am now conviced that I sanded the engine. There is nothing else that makes any sense. All 8 pistons don't have oil control rings.
I'm guessing that we worked about 6 hours before losing the axle. Half of that time, the engine wasn't even running. Three hours of running the engine and I can't find any oil on the dipstick after putting in 9 quarts.
I was told today that the smoke issue is not from the engine, but from the oil in the muffler. When the muffler is hot, it smokes, if it's not hot, it won't smoke. This makes sense as to what we're seeing.
There are not leaks that I can find, there is nothing else that explains the symptoms. I got dirt into the engine and it sanded out the oil control rings to the point they do not work. Then oil is going past the compression rings, but still giving me a good compression reading. Then it is burned in the cylinder and goes out the exhause valve. This also explains why the valve guides failed so quickly. Super fine sand or silt in the oil wore out the valve guides.
It all makes sense and explains all my problems. Of course, the solution is a total engine rebuild two years after the last rebuild.
After I finish beating my skull against the wall, I'll start pulling the engine.
Eddie