Regrettable Engine strip down !!!! I think " Follow up". But it's not over.

Kawboy post=34188 userid=599Normally, before I go and tear down an engine for rebuilding, I do a leak down test. It tells me everything I need to know about the problem before I just tear it all apart and start  Leak down testers run between $70- $150 .and the information they provide is invaluable when you know how to interpret the information provided. Some people think that just looking at the gauge is "the result" The person doing the test needs to listen for leaking at - The carbs to determine if the intake valve is passing, the exhaust, to determine of the exhaust valve is passing, the crankcase to determine if the piston rings are passing and the rad cap, looking for bubbles suggesting a bad head gasket.

If the piston rings were leaking and causing an excessive oil consumption problem the leak down tester would tell you how bad, and what cylinders.

When you tore down the engine, did you find carbon oily buildup on the back side of the #1, #2, #6 intake valves? If so then valve seals were a problem or-
The valve stem to valve guide clearance is excessive and the valves are rocking in the guides to the point that the valve seals can't accommodate. Valve seal problems also tend to show up on a hot engine and the worst happens when you pull up to a light and idle for a period of time, then when you pull away, the exhaust belches smoke and then after about 6-10 seconds seems to clear up. What happens is at idle the intake ports are under a higher vacuum which helps pull oil past the valve stem/ valve guides and sucks oil into the cylinders. Then when you accelerate, the fuel burning in the cylinders burns off the oil that accumulated on the piston crown and combustion chamber.

Your compression test - the results are high and if the gauge is accurate, tells me that carbon/ oil build up on the piston crown and combustion chamber is high causing the combustion pressure to be too high. 130-140 would be more appropriate. A thinner cylinder base gasket and or a thinner head gasket could also cause the compression to be high. 150-170 compression could be found in a engine with 12-1 compression ratio and would demand high octane gas to prevent detonation. 
the camshaft grind on a stock cam is around the 270 deg. duration which is a moderate aggressive grind and it's hard to get a true compression at idle rpm when the intake closes at (off the top of my head) 30 degrees after bottom dead center. The more aggressive the grind the lower the compression readings. Take the same engine and drop a 290 grind into it and , you could see a compression test drop by 20-30 psi just because the intake valve closes later.

And last that comes to mind (although since this is not a new issue) - I've seen it where a newbie didn't know that there are 4 orings that need to be placed around the cylinder head studs associated with the oil passages that feed oil to the valve train. If someone left those orings out, then it could be possible for the oil to pass by the head gasket and get in to the cylinders on cylinders 1,2 and 5, 6.

I hope these thoughts help.
KB