Pull a/the ic pipe(s) and check for oil, if so it's turbo or the pcv spitting it in pre turbo thus check there (turbo inlet pipe). If that comes up with nothing it's going to be in the engine and you never know 100% but it would likely be oil rings or valve seals.

Valve seals generally show burning at start up then not much after that, oil rings while the engine's running but there can be exceptions to this.

This is, of course, if by oil leak you are referring to your aforementioned oil burning issue. If not clean everything, drive it for a while then look for the highest oily point.

There is a small amount of oily film in the cold side pipes. The car does not smoke at all on cold starts.

He's jacking with you.

I'm not really sure if you need a restrictor in the journal turbo, but I think I used a .060 to stop the smoke in my old VW.

Worn exhaust stem seals can also puff smoke after letting off on a hard acceleration run. The sudden deep vaccum after letting off the gas will suck it through the seals. I've got 190ish across all cylinders but puff badly when I let off the throttle... as long as you're not blowing smoke on acceleration I'd say roll with it. A worn or over-(oil)pressured turbo journal bearing (as Hustler mentions above) will do the same thing too...

With oil in the pipes (that was pre turbo right?) then it sounds like pvc is one issue. At the very least buy a 323 gtx turbo pcv valve. Contact begi ask about the need for a restrictor and see if you have one. Try cleaning out the ic pipes a bit and check them again after driving to find the leak. As said above decel oil burn can be from the valve seals as well.

If the valve seals are failing they can be replaced without more than removing the cams and lifters, I just did this on my dad's Goldwing. I can't think of a test for them that wouldn't involve doing 90% of the work to replace them, maybe someone else?

Just pointing out the exception, I agree with you, not correcting anything you said...
My 1.6 smokes bad when I let off the throttle, but I also have 190 across all cylinders...

i am working on making a catch can setup. we will see if this makes any difference.

i am also working on contacting BEGI about a restrictor.

A bit old, but did you ever solve this?

Could you please explain to a noob how one would go about compressing the valve springs? I cant see an easy way without pulling the head...

thanks.

Oil restrictor...I forgot, I currently use a pop rivet. I've been using the rivet method on my turbo for the past 34,000 miles. It stupid cheap and so easy. My compression numbers are way lower than yours, and I'm sure my valve seals are shot...my turbo seals may even leak a bit? Moral of the story, keep the boost under 10 psi and just drive the F*ckin thing!

You need compressed air forced in through the spark plug hole to keep the valves from falling in and a spring tool (search). Here is a vid about one tool out there. There are different tools that work different ways, check out a few, there are often vids about how to use them.

If you have doubts about this at all please get some help. I take no responsibility for you causing damage to your engine or making your car undrivable.

X2 my compression on my civic was still good, but my car was blowing smoke from the turbo and the stem seals