Sounds to me like you need to take it for a drive. Get it good and hot. Watch the oil pressure. As long as it's good, you'll be fine.
May take a while for that smell to leave the oil even with new oil in it.
3/16" isn't much. As long as it stays there you should be fine.
Could be that much hadn't drained all the way to the pan the first time you checked it.
