I can tell you now, it's not the piston rings. Smoke from bad rings is obvious. It's usually the worst when you decel from high RPMS as it gets sucked up past the rings quite badly and burnt in the combustion chamber. When under load, the bad rings just let combustion gasses into the crankcase and you usually get the dipstick blown out.

I suspect the turbo, but the HG is a possibility. If it's the headgasket, you will be able to tell quickly by watching the coolant level, If it's a leaky HG, you will be loosing coolant, and often (though not always) the cooling system will be over pressurized. The radiator cap then opens prematurely and you get lots of coolant in the overflow container and you will have air in the cooling system.

A bad oil seal in the turbo does exactly what you're describing, so I really doubt it's the HG.

I sprayed some copper head gasket cement on the HG before I installed it and after the test run, as I opened the radiator cap, there was a flake of the copper spray floating on the surface.
Thats when I started thinking it could be the HG...

If its the turbo thats leaking, is there any way to test this?
I know its possible to take the water inlet hose of the turbo but it would seem insane to cut the oil flow to the turbo...

Also, if its the seals in the turbo, would it be possible to change them my self? Ive seen alot of rebuild kits sold online...
Wolter

I wouldn't be too worried about the spray being in the coolant... unless this is a metal HG. You're not supposed to put anything on a metal HG. If you did, it probably didn't seal and that is likely you're issue. If it's a standard fiber HG, the copper spray is fine. I've done it as well and I've seen the copper spray end up in the coolant as well.

As for the turbo, if it's a bushing type turbo, you can try to rebuild it yourself. I've done it and it's not hard. If it's a ball bearing turbo, they can't be rebuilt by a DIY'er.

Alot of people use the copper spray on metal gaskets too. The spray I used is VHT Copper Gasket Cement and it says on their website that its OK to use on metal gaskets as well (http://www.vhtpaint.com/products/coppergasketcement/)
The T28 has some pretty good shaft play and it wouldn't suprice me if it leaks...
I did put the return line flange on there with some silicone gasket, it could have gotten on the inside of the flange and restricted the oil flow a little. That could result in some blowby?

If I take the turbo out and disassemble it, how am I supposed to balance the thing ones it's back together?
And where do you recommend that I should by the rebuild kit from?

P.S. There's no better forum out there You've been really helpful

I can tell you Cometic specifically states that nothing should be sprayed onto their HG's. If you used a different brand, it may be a different story.

Yea, I learned the hard way that RTV on the return line flange is a bad idea. I used VERY LITTLE RTV, and it still squished into the line and restricted it. I didn't get any oil blowby inside the turbo because of it, but that was on a BB turbo, so the oil flow through it was very small. I'm not sure I would have had the same luck on a journal bearing turbo.

When I rebuilt a turbo, I very carefully marked the shaft, nut, and compressor impeller so that when I put them back together, they were all lined back up to the same spot. Also, the nut on the compressor impeller is usually a backwards thread. Don't make the mistake a friend did and break the shaft trying to take the nut off because he was actually tightening it! After the rebuild, I ran that turbo for years at more boost than it should have ever seen and I never had any issues.

I got my kit off of ebay.

Thank you! It's good to hear some feedback and appreciation sometimes.

Havent been on the forum for a while as my studies in chemistry and cellular biology strangely takes all of my time
Last weekend I finally got the time to work on the car again.
I read a post about the APR studs and that they shouldnt be screwed all the way in with the hex key. This then gave me the strenght to loosen all my head studs, as I was tightening the studs back up I noticed that the socket I was using jammed in the holes where the headstud nuts were.
After grinding the socket down abit I then resumed to tighten the studs to 80 ft/lbs and started up the car.
Some moments later when the engine got warm enough I got the courage to rev it, and there was no white smoke coming out anymore

But as usual I noticed a new problem, there is a loud hissing noise coming from the intake, so loud that it can be heard inside the cabin -.-
Oh well, I guess I need to start looking for a vacum leak now

APR states that the studs should only be threaded in hand tight. The hex head in the top is for removal of the threads only. I do bottom mine out though, but only using light finger pressure.

The first time around as I was putting the engine together I made the mistake of tightening them down with the hex key. Now I just loosened them 1/4 of a turn, they are probably still gona bottom out when you tighten the nuts to 80 ft/lbs
As a positive side effect of my paranoia that the block could crack because of my mistake Ive npw got the coolant leak fixed

Great! Now go beat on it and enjoy it.

From ARP's Website, just in case anyone wants to know for later reference.

Q: Do the head studs only go in hand, or finger tight?

A: Yes, cylinder head studs are installed only hand tight. Other than the use of an allen wrench on the hex broached into the end of the stud (to ease installation, not to apply torque), use no tools to seat them in the block. However, it is extremely important to ensure that the studs are fully bottomed out in the hole in the block and not hung up on damaged or corroded threads in the block preventing the stud from being fully seated. This is often indicated when the stud threads extend past the deck surface.