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has the engine been ran for more than .5 hour? It needs to be taken on a long drive to get the exhaust nice and hot. If it has had fogging oil put in then that could be your culprit. if that's not the case then you should put a vacuum gauge on it and do a compression test. if vacuum is between 16 and 22 in. hg. on idle with a smooth needle and the compression shows even good compression then i would suspect worn valve guides or leaking valve seals. if its just the seals you can change them without removing the heads.
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