Hi there,
Thank you for your intended donation.
It sound like you have the classic signs of worn valve guides & faulty valve stem seals. The warm thin oil is passing the seal and ending up on the inlet and exhaust valves, when you start it up this oil is burnt and bluish smoke is the resault. It will clear up after a short time, but oil will still be ingested by the engine all the time, normally in small amount that will not readily be visible, You may notice some extra smoke when you give it a rev, this is increasing engine vacuum and drawing in extra oil. Be careful that you get the engine checked so as the bottom end will not suffer if you O/haul the head. Increased compressions can stress worn rings and smoking starts all over again. It's a bit of a vicious circle sometimes.
I hop that this answers your question.
Mark (mhpautos)
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Wednesday, December 19th, 2007 AT 7:29 PM