check the valve guides to see if they are loose

How long did you run it for whilst it was smoking? Could have just needed a long run to clear it out. Still at least you know you now have a decent top end!

funny you should say that,i had it on its end for couple of hours when i took the gearbox off and put in new clutch,the reason it was on its end for so long was because the damn gearbox wouldnt go back onto its splines with the clutch,so u think i have stripped it down for nothing :( and the damn head gasket kit cost me £65 what a waste of money.

the engine u put in had it been on its side or upside dwn as if it was out of a accidant damaged car?? bit of oil mite hav got into the air intake mite need cleening out that was wot i had 2do. if so flush it hrough and it will soon get rid of ne crap after a run

piston rings look fine took them out and put in the bore look ok to me but so do the oil seals,would be a shame to put it all back together again after new seals fitted just for it to be the same

are the piston rings in good condition, the 1.6 16v valve stem seals are prone to going.

Get a micrometer on the bores and check for ovality.

just got my 1.6 running today only to find its puffing out blue smoke out the zorst :( took the head off and took the valves out to check oil seals but they still feel nice and soft,could they still be worn out or could it be something else ? the bores in the block have no signs of any wear on them at all. any help ?