The oil is the head gasket, and smog issues with HC would indicate likely stem seals. Budget-in a valve job, but at this age, plan on replacing lots of stuff - rubber airpath and vacuum plumbing, all the coolant hoses (BAD oil!), probably airflow meter or pot, etc.
Steve
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'91 MB 190E 2.3
'08 RAV4 Ltd 3.5
'83 Lazy Daze m'home 5.7
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