Hy BDammers47, the high vacuum condition caused by decelleration with the throttle closed will pull oil past worn valve guides and oil control rings, the resulting smoke is always blue however. You said your smoke was grey/white, that would indicate coolant/water getting drawn into the combustion chamber, do you have to top up the engine coolant a lot? As to the carb problem, it sounds like a rebuild is in order, that will verify the float level, and make sure all the passages are cleaned out, hope that helps.
