Hmmmmm- - - -I can't see the front of the cylinder heads very well, but it appears you've got a set of "Power Pack" heads from a 283 or maybe a high-compression 327 on it. If they have a rectangular pad cast onto the front of the head with a single triangle shape centered on the top of the rectangle, they're not 350 heads. Those are 58 CC heads that will bring the compression ratio on a 350 with flattop pistons up over 10:1. The .060" overbore will add even more compression pressure. I've heard a compression rattle on some engines set up that way that sounds almost like a Diesel.
Do your best to plug up the external leaks, and keep an eye on the oil level. Unless you live in a place that gets anal about oil smoke like Commiefornia, just drive it, and don't worry much about a little blue smoke. Oil is cheaper than overhaul parts, as long as it's not fouling spark plugs!
Jerry
