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I recently completed an engine swap (replaced a 390 with another 390).
I noticed the engine smokes a little. I took off the oil cap from the valve cover and thats where the smoke is coming out of. Not crazy amounts or anything, but smoke is coming out.
What was the condition of this engine that you put in?
"Blow by" is the condition that you have. This is simply compression getting past the rings.Often a stuck pcv valve can also promote this.
Not sure I would be tearing the heads off yet.
Compression check and leak down verification would be a place to start.