"The neat thing about a leakage test (as opposed to a compression test) is that it's faster and easier to figure out where the pressure is going. If you hear air coming out of the tailpipe, it indicates a leaky exhaust valve. Air coming out of the throttle body or carburetor would point to a leaky intake valve. Air coming out of the breather vent or PCV valve fitting would tell you the rings and/or cylinders are worn. "
might explain the smoking out the breather?
mmm not looking great at this stage... fingers crossed for the best otherwise i've got my work cut out for me before megameet