I recently purchased a 1996 5-speed that had been rear-ended in order to swap the 1.8 into another car. I was told that before the accident the car ran perfectly but had smoked on start up after the accident.

My own observation since I've picked up the car is that there is minimal smoke on start up but the car smokes quite a bit when you rev the engine. I'm used to oil smoke being bluish and this smoke seems to be more of a grey so I suspect it's fuel. The spark plugs are very sooty, but don't seem oily, as well. I did a compression test and got 190-190-183-190 so the motor itself doesn't seem to be the problem. The check engine light is on so I also tried the paperclip method to get the codes but it didn't seem to work. For the record it is an OBD-I car.

I'd like to solve this issue before I proceed with the swap and introduce a bunch of other variables. Any ideas?

And because everyone loves pics...