<E30> Valve seals leaking oil BIG TIME after head rebuild on ETA

["Milliet, Ron P." <RPMILLIE@xxxxxxxxx>]

A few weeks ago, I posted a message about the HUGE puffs of what
I thought was "white" smoke.  The smoke is not white anymore, but
without questions light blue from oil.  I pulled the plugs yesterday for
the first time since the head rebuild.  The car had sat overnight, and I
found all six plugs dripping with oil.  I don't mean a little damp, I mean
DRIPPING with oil.  A quick spin on the engine with plugs removed
quickly loaded right fender with oil.  No doubt the valve seals/and or
guides have a serious problem.  Cold starts always produce tons of
smoke and a real rough idle until smoke clears.  Once warm, engine
runs fine. When I had the head rebuilt, I bought a head set which 
included valve seals, but no guides.  The machine shop said the 
guides were fine and we did not need them.  The shop swears 
they properly installed all the valve seals. 

My questions:
What could be causing such major leakage on all 6 cylinders?  
Can the valve seals be installed wrong or not at all?  
Can worn guides with new seals have this problem?

The engine has consumed 21/2 quarts of oil in 6 weeks.  The 
compression is good and does not smoke at all on the road.

Thanks in advance.

Ron Milliet
Georgia-Pacific
New Augusta, MS
87 325is
86 325e
87 535is

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