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I'm psychic. Therefore, I predict you will find a broken piston ring and or piston skirt in the Number One cylinder.
If its the valve stem seals, the smoke tends to come out when you let off the gas. If its rings the smoke increases with RPM's.
If I were in your shoes, I'd be looking for a Jspec engine imported from Japan. Even though they are used engines, I think they are better than what you would end up with if you rebuilt your engine. Much cheaper way to go too. Take this from someone who has done a Jspec swap, and a couple of rebuilds.
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