You say there's smoke from under the bonnet too, particularly from the turbo area? Have you pulled the turbo intake & bottom intercooler hoses off to check for oil there?
Provided your compression test comes out good I'd suggest perhaps it's failed oil seals on the turbo, this would be confirmed by oil pouring out of the intercooler when you pop the hose off & you can check the turbo bearings with the intake pipe off, there should be minimal play there (barely noticeable at all)
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'89 MA70 Supra GT aero 3.0turbo JDM, Rebuilt motor, K&N intake, 3" stainless turbo-back. New turbo and braided line kit...
'89 Honda NC27 400, NC23 cams, open pipe, PC36a shock & possibly Showa USD forks...
'83 Yamaha 29R XJ750E-II, number 69 off the line, only runner in the country? Original except Koni shocks
'95 Honda PC26 CB500R, Winter hack, hateful, trying to sell it
I'm not paranoid, they really ARE after me!!!
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