Stuck rings on the pistons comes to mind. Putting some ATF in the cylinders and air pressuring each cylinder and then letting the engine sit overnight before cranking it back up may help.
I think all the smoke is from the exhaust pipe and muffler from the old engine that oiled it down from the inside, that would explain why it smokes after it gets heated up, the oil starts burning from the inside.
Is it possible to drop the exhaust and see if it is still smoking from the manifolds ??? Other than that,try Ted's idea . Another thought would be to try a heavier oil ,maybe a 20w- 60 ,or even a straight weight 50 .???
Lon