I may be wrong but you could still have decent compression in a cylinder and still have a wet plug if the compression rings are good and the oil control ring is cracked or broken also if oils is dripping down the valve guides your compression will be fine. I think your engine was rebuilt, the heads were removed and washed down in the parts washer the crud that builds up around the valve stems was washed away the heads were reassembled with new seals and no machine work was done . I think if you remove the keeper and the valve spring on the cylinder you have the fouling on you will find excessive play in between the head and the valve stem. The fact that you have the heavy smoke condition and the high oil consumption makes me think your issue is valves not rings.  But I am just a 70 year old guy so do not quote me .

1955 Ford Crown Victoria Glass Top
1956 Ford Club Sedan Daily Driver
1971 Volvo 1800 I have owned this car 40 years 
1966 BMW 2000cs  under restoration                                                                       I cant afford a new car 

I think you are right. Because of the condition of the rocker shaft on the right side I think the engine was not oiling correctly on that side, leading to excessive wear on the rockers and valve guides. That being said, the only time I've seen smoke is when I put the front of the car in a steep downhill drive to turn around and the wind blew a puff by me. It doesn't smoke otherwise. 

"...the only time I've seen smoke is when I put the front of the car in a steep downhill drive to turn around and the wind blew a puff by me. It doesn't smoke otherwise."

I think what you will find is that the oil supply is overpowering the cylinder head forward drain and is pooling on a downward slope so as to flood the #1 cylinder valve seal(s). As the vehicle levels out, the smoking subsides. 

The valve guide(s) and or seal(s) may or may not be bad.          

____________________________

I remember seeing a service bulletin from Ford about unequal oiling from side to side.  As I remember, a certain combination of camshaft and cam bearing caused one side to over oil and the other to under oil.  Their fix was to put a restrictor in the oil passage in the rocker stand of the over oil side to try to equalize the flow side to side.

John - "The Hoosier Hurricane"

I think after you get it all back together you should put a vacuum gauge on the engine it will tell you tons more than a compression gauge will. The readings are true indications of what is wrong .

You would appear to need to concentrate on the suspect cylinder 1st.  Then from your posting, the fact that you can tilt the rockers side to side is not good. At the least the shaft needs replacement, and probably some or all that sides Rockers. As noted, due to poor previous oiling possibly, you may have badly worn valve guides or a bad valve seal.. Valve guide replacements are available, but require machining to install. There are guide liners available, which might work, but our moderator Ted, recommends one type over the other, & I don't have that info at hand at the moment..Good luck.    


Paul