The picture the head shows cylinders #5 and #6 look wet, but cann't tell if it's oil or coolant. If the head gasket wasn't compromised around those cylinders I suspect oil and reinforces the oil smoke you experienced. From your other post regarding the crack in the block it could be a mute point but I suspect that there are serious problems with the rings in cylinders #5 and #6 although it could eb intake valve guides. You could pull the intake valves from those cylinders and see what the valve to guide clearance and seal conditions are to help answer the question.
It sounds like you may be between a rock and a hard place if your current block is cracked and your original engine has significant issues preventing it from being a rebuild cantidate.
