I have about 500 miles on a 1.8L engine rebuild and noticed that it has burned about a quart of oil. Is this normal? I've also noticed some fine black soot on the rear bumper as well. It has Brad Penn break-in oil in it currently.

By 500 miles I would expect the rings to have seated. You mention you are running break-in oil. Have you changed the oil in it yet? I would start there. Check in consistency and smell of the oil. Does it smell like fuel? Black soot on the bumper could also be an over rich condition which can gas wash your cylinders preventing the rings from seating properly.

Thanks. I will change out the oil and filter tomorrow. The oil DOES have a gas smell! I have a AEM air/fuel gauge on the car. It reads between 12 and 13 so I believe it is in within an acceptable range. Thoughts?

Have you driven it hard enough to seat the rings properly?

Not sure what is meant by hard enough but... driven at variable speeds, some shifts @ 4200 RPM, cruising on I-75 at 80 mph. When I had it at 80 mph the oil temp reads at 230 degrees. Not great but not in the danger zone either. Otherwise, oil temps are 210-220 range. Cylinder head temps at 320.