I would suspect you have some injectors that are not spraying a good pattern. They are firing correctly but with a poor pattern. After the engine warms up it will burn the poorly atomized fuel better than it will cold.
Many times an injectors wears or plugs and sprays a stream rather than a mist. This larger particulate size does not burn as well as a smaller/finer mist.
IF you can afford it I would have the injectors tested or rebuilt.
Doing an engine overhaul without changing the injectors is kind of like showering and putting your dirty cloths back on.
The injection pump can be out as well but with good injectors the motor will usually not smoke.
Valve adjustment will usually not make an engine smoke.
Also did you use break in oil??? The newer oils are too "slick" for a low powered break in. You can't grind feed long enough to really seat the rings in like you can on a dyno.
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Today's Featured Article - Horsepower Defined - by Staff. Indicated Horsepower This represents the power developed in the enine cylinder as obtained from the pressure in the cylinders. This is pressure obtained from an indicator which shows cylinder pressures. Indicated horsepower does not represent the actual useful power delivered by the engine. Brake Horsepower This is the actual horse power delivered by the engine to the shaft. It is equal to the "indicated horsepower" less the friction of the engine. It is useful hor
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