Seafoam will always smoke. 180 +/- 2 psi is actually optimal.

I wouldn't jump at the head and cam just yet... If you were borderline before on emissions, you will be thrown over the line by the mods. Wait until after the test.

Getting the injectors rebuilt would be wise. A new cat and o2 sensor would also help. Make sure the truck is driven for about an hour prior to the test, and try to go when it isn't busy... This helps the cat work more efficiently.

Good luck!

"A young man who does not have what it takes to perform military service is not likely to have what it takes to make a living." - John F. Kennedy

Proud owner of an 88 Montero (with a blown engine).