I solved the oil-in-water problem but now I have a more serious problem. I bought this car with a freshly professionally rebuilt engine (in 1987) which had not been started since the build. The previous owner paid $2500 for this overhaul and then just installed it without starting it. At first it ran well, with no smoke at all. I ran then engine with a plywood baffle behind the car to prevent exhaust from filling the garage and noticed, as the exhaust was deflected into the sunlight, "sparkles" (not sparks) like very fine metal particles suspended in the air. I wondered where the metallic particles might be coming from, hoping that they were coming from the new exhaust components. I tried to picture in my mind engine parts being slowly filed to dust due to a possible lubrication problem. Last week, while setting the timing and carbs the engine started smoking bluish-white smoke, accumulating while idling and then billowing upon the opening of the throttle, and steady smoke at higher rpms. I just checked the compression--160-165-165-160, cold. I am about ready to pull the engine to check somebody else's mechanical ability. Does anyone have a clue or a test which might help me diagnosis this problem before dismantling?