I got this engine from Brad about two years ago, and the PO from him had the engine rebuilt. He ran it very little before I got it. At that time we knew it was a older rebuild and the work was probable done a few years before he had it. The engine is a bit of a frankenstein. with the '70 case and '68 everything else (oh, and a 2.7 shroud and fan housing).
It only smoked on start up, (unless you count the smoke burning off the headers.
) and not every time, but moreso after the addition of an external oil cooler. I attributed that smoke to the fact that there is now 3.5-4 more qt.'s of oil.
It only "used" oil because it was leaking. Left chain cover, both bottom valve covers (6 bolt), int. shaft cover on front, oil sump plate, maybe the rear main, have to check. Oh, and it is dripping from that fabulous Vellos oil tank, not sure where but I plan to check it everywhere.
I have new silicone vavle cover gaskets and new sump plate and silicone gaskets for that too. Plan is to definately get everything sealed up tight.
The carbon is very soft and comes off easily. I spent alot of time trying to dial this engine in myself. It has seen tuning time with three others. All of this could have helped produce the carbon mess.