Christopher, I thought one old-timers would bring this up, but your blue oil smoke description is symptomatic of bad valve guides. When you get off the throttle the vacuum is at it's highest and oil is sucked past the valve guides. There's very little combustion occurring in the cylinder at this throttle setting so the oil is not all being burned. When you get back on the throttle and the cylinder gets a full load of air/fuel it burns off the oil that is left in the cylinder. Best to look into a valve job before you conceder rebuilding the short block.
Look in your mirror at night when pulling away from an intersection. If you are pushing smoke on acceleration this is a sign of worn rings. You may not see anything in the daylight but it will show up at night in the street or headlight. Your compression pressures look quite normal for an engine that has a few miles on it and really shouldn't be any concern.
Denny Graham
Sandwich, IL
