oil leak and smoking issues at initial and cold start up

[1991acclude]

Ok so I'm on cb7 #11 or #12 (I think) and something I said I'd never do again I did. I bought a 92 cb7 LX coupe 5 speed without actually starting the car while it's cold. I drove about 50 miles to purchase the car as my new work automobile. So when I got there the car was already running and people were looking at it and passing up on an incredible deal. The guy was selling 2 cb7 5 speed's (DX sedan and LX coupe) for $1500. My wife didn't want the other one so I bought the coupe for $750. Now I drove the car back fine with the only problem being a faulty dimmer switch which kept blacking out the dash unless I wiggled the switch. Man I revved the car to redline with no smoking issues whatsoever and I checked the coolant; it was green as the incredible hulk. But when I got up to go to work at 3 am I went to let it warm up and man there was a cloud of blue smoke in my driveway, lol. I'm pretty sure the owner knew but didn't tell me and this is the 2nd time it's happened since my first cb7. I've had the car since Feb and since it's been my work car I haven't really cared but now I'm faced with either selling it or fixing it. I know it's either rings or valve seals. I was thinking of buying a habor freight compression checker to check the compression. I'm sure it's pretty tired; it's 2000 miles from 300,000. But it's runs great, and I drive the car 100 miles per day. I've tried stp stop leak and lucas oil stablizer but no avail. It has always had an oil leak which has gotten worse since I bought it. It appears to be leaking from the oil sending unit and onto the flex pipe. Now here's where it gets tricky, could oil leak from the sending unit onto and in the flex pipe and make it smoke like mad out of the tailpipe and a lil under the hood? Also if I drive the car cold, like meaning just take off and let the fast idle pull it with a lil throttle it doesn't seem to smoke near as bad as just letting it sit until arriving at normal operating temperature. Can I just put teflon tape on the sending unit since it's working correctly b/c it always lets me know when the oil is low, from an occasional flicker when turning hard to a constant flash when sitting still. And if it's the rings or valve seals should I repair them. I'm pretty mechanically inclined and the only thing I can't do on my cb7 is change the timing belt/balance shaft belt/water pump/tensioner. (I'm thinking of ordering Eric the car guy's $25 video to learn how to do that and change F22A/B/23 timing belt's for less than others around here. Anyway let me know guys & gals. Thanks again in advance. Man I love this forum.

[accord4me]

well sounds like it could be the valve seals, which isn't hard to do.
couple diys on here for it, its pretty cheap to do as well

[1991acclude]

no doubt

I saw a post and commented on it recently. Even a youtube video about putting string in the cylinder at TDC to keep the valve up. So do you recommend just changing the seals and i guess the upper and lower rings in the valve cover gasket set? I think I can get the kit cheap from ebay or just get the seals from Honda? Also what abut the leaking sending unit? Any advice?

[Fleetw00d]

I have a similar problem without the smoke, using a quart of oil every tank of gas. If you change the seals, use Honda valve seals at least. Change the sending unit, it may actually be leaking through it, not past the threads. I would use some thread sealant, not teflon tape.