Alright, iknow its been a while since I've replied but this is where we stand.
leakdown and compression tests where done to see if the rings could be the issue of the smoke. compression is spot on. We discovered that the valve guides are worn too much. as i started going back through the car, I noticed a nice coating of oil on top of all of the pistons. we are getting blow buy through the valve guides and it is coming out the exhaust ( also with a mixture of gas due to running rich). The head came off 2 days ago and guides were ordered. The turbo and everything look great since i just pulled it all apart. as soon as this is fixed...its dyno time. I'll let you know what happens. other updates to the setup are.
1. aluminum radiator
2. oil cooler
3. hondata...(if I can get him to spend the coin)
thanks guys for all your help along the way.
matt