Join Date: Aug 2008
Location: Alberta, Canada
Dirtysidedown has a good answer, the rings are not seating. But since it is a rebuild, I'd also question if the rings were put in right (gapped correctly, gap in proper place).
Another thing, with the problem of the blue smoke on "coast" and the fact that new guides were put in, does it puff blue on startup?
Usually blue smoke on decel is vaccuum sucking oil through the guides (intake). You had a good amount of mileage on the motor before the rebuild, the valves may not have been deburred and scratched the new guides on the way in.
Also, does it burn less oil when the engine is cold?