Oil spitting from oil tank- normal on a /6? Options

[tornik550]

I built a 2.7 and I originally was running it on a test stand. I used an old 911 oil tank I had. Everything ran fine and didn't seem to be an issue.

I now have the engine in my car and I am planning on driving it soon. After the initial break in on the test stand, I drained the oil. Once installed I filled it with 10 quarts. I had a small issue which required that I drain the oil. Fixed the issue then filled it up again. I clearly put in too much oil. After idling for about 5 minutes, I saw a slight bit of oil in the tail pipe. Drained the oil again- put 5 quarts in. Still getting blue smoke however I assumed that is just the old oil in the exhaust burning off.

I tried to check the oil when the engine was running and hot, when I take the oil cap off, I can see oil gurgling in the filler neck and it spits out a fair amount of oil.

I am new to /6 engines however this clearly doesn't seem right. Could I still have too much oil, is this normal or could there be something else going on?