Sigh... I'm sure it was a low mile JDM engine.... and God only knows how hard it was beat on before it came to the states and then how long it sat in a shipyard with a gentle mist of surface rust slowly leaving little pock marks of love everywhere important.
Seriously... how many JDM engines have you seen? Half of them were driven to the point that they could no longer pass inspection (often without oil) and then simply discarded for something newer.
White smoke? Does it smell sweet? White grease? Sorry, lithium grease isn't really used as an assembly lube... you're probably looking at an oiling system full of coolant. Have you checked the radiator for oil?
You know, the PCV system is actually VERY beneficial to older engines. It actually helps prevent blow-by. It creates suction which evacuates the blow-by gases which occur in all engines. get the breather off of it and run it to a vacuum source. If you don't like it running to the TB then run it to the exhaust. And if you're going to keep it running to atmosphere the catch can isn't going to do much more than sit there looking pretty.... well, in your case it's probably full of coolant and unburned fuel.
A light textured swirl pattern on the head and block deck is actually desireable if you're running an OEM type graphite HG. If you're running a steel HG you want smooth as glass and straight as hell. You need to specify what your doing or they'll assume it's a rebuild per specs. With the texture you should just barely be able to feel it with your fingernail.