KGH did you do a compression check yet? You can buy a compression tester for less than 20$ at any auto parts store. I'm telling ya bud, blowing smoke out of the dipstick tube is a very bad thing. That's some serious blowby. My motor went kaput as soon as it started doing that.

Did you try pulling the spark plug wires one at a time while it was running to see if there's a change in the motor? Be CAREFUL!!! I've gotten shocked more than a few times. Wear some gloves and don't touch any part of the vehicle while you do this!!! You want your body to stay grounded!!!