My thoughts would be  Oil  bleed down to crankcase and  just happend to coincide  with your Tappit adjustment  ,   Check oil level in crankcase   and drain off excess at top screw  (level Plug)

Bart McMurry wrote:

Thanks Philip.  That was my first thought too, but when i checked, only about an oz flowed out.  I pulled plugs and front is wet and rear is wet and full of oil.  

Any other thoughts before i start disassembling?  I'm thinking rings.  I have a leak down tester with adapters, anyone ever done a leak down test on a scout before i do?

good idea.  hadn't thought of that.  will check it out.

A leak-down-check is excellent test but the first result is normally just used as a norm for consecutive tests during the engine life span. The first test is best done just after run-in of a freshly rebuilt engine. 

Every engine is different even if a as low percentage leak as possible is sought after. 1-2 % is difficult to get in a modern engine and 10% doesn't have to mean the engine is shot. It is when you find big differences between test occasions or cylinders that it starts to be a matter of concern. 

It also depends on a couple of reasons, what input pressure is used, the meter, time span of reading, warm or cold, if oil is in the cylinders, valves must be tight, and stuff like that so consistent at test occation with the same meter and same input pressure is very important in order to get a comparable result. 

Hearing is important, listen to how much and where the air is leaking from, crankcase ventilation, intake, exhaust.

Thanks for all the input.  My thinking is that loosening the exhaust valve lash back to spec isn't causing the blue smoke, but is coincident to what the true issue may be, which is oil slipping past the rings.  Bike idles fine and runs great, with no stumbling, but as it warms up, blue smoke starts to come out and on revving, it pours out the back.  Plugs look to be wet with oil, and piston tops are black.  Oil level wan't too high when i drained the level screw.  

Carl/Tim, seems like i'm at the point of warming it up and pulling the heads to get a better look at things do you agree?

Best,

Bart