Also it puts some smoke out the tail pipe. Where should i start here?
Sounds like you have an exhaust leak at the manafold. If so it should be making some hissing noise. Also sounds like you either have a valve seal problem or rings. You claim no blow-by but are you sure? Take the breather out of the valve cover and give it a few revs. If you get a lot of smoke coming out the valve cover it's time to replace the seals. Did you do a compression test on the engine?
