breather pipe from block to air box can block and cause oil probs but it sounds like either your stem seals or your rings have gone, compression test would have shown up rings pending on wether smokes when cold only then not when warm and when test is done, or in worse case smokes all the time, but rule that out for now.
changin the whole engine is as bad if not worser job than doin the head, depends on what you wanna do, stop it smoking, or do it so it lasts a good while.
you can do the stem seals without removing the head with a special tool from machine mart, basically it screws into your spark plug hole, and you hook up a compressor to it, after removing your cams and your piston is at the bottom of the relevant cylinder blow 100psi into cylinder, this will hold up the valves with enough force, then using the other tool from machine mart (a valve spring compressor that hooks on to manifolds or studs), you can apply pressure to the spring cap and remove the collets then remove springs etc and then with some long nose pliers remove the old stem seals then pop on your new one, repeat this on the 4 valves for that cylinder then once you have spring caps+collets on remove airline and adaptor to the next cylinder and so on.
thats how to do it on the cheap, it wont offer any long term help as your guides+valves will no doubt be quite worn to but it is a cheap way to do it!!!!
other way is remove head, and replace the lot, valves,guides, springs the lot to do a proper job that will last... the choice is yours!!!
Gaz