Checked the coolant for traces of oil and found none.
Checked the oil for traces of water and found none.
Spark plugs were all normal/healthy with the exception of a little oil on cylinder 4's.
Compression test results were consistent, albeit a hair high = all cylinders were in the 160-170psi range. (carbon build up?)

Watched the tailpipe during a morning warm-up and the smoke lasted for about 5 minutes then decreased significantly. There would be random intermittent bouts of increased smoke that would last a few seconds.

I'm wondering if the smoke I'm seeing is actually not water, but instead burning oil. It is definitely more white but could be classified as a very light grey (which I guess is technically white) <img src="/forums/images/graemlins/rolleyes.gif" alt="" />
Also, the smell is not at all sweet like burning antifreeze. It smells, well, more like burning oil. Also, come to think of it, the motor has been consuming more oil than usual. <img src="/forums/images/graemlins/notooth.gif" alt="" />

Any reason not to suspect a bad valve stem seal? If it is oil burning, and I'm now thinking it is, it must be coming down from the head since the compression test is telling me the rings are ok. I'm going do a leakdown test to make sure it isn't a bigger valve problem and to be sure it indeed isn't a cracked head/headgasket.