i just got my motor back. it has new pistons, bearings, head gasket and rings. the block and head have been resurfaced. i had it all put together and the engine smokes grey smoke. it has oil only in 3 of the exhaust ports. i did a compression check and it was
165-150-165-165. so do you think the valve seals are bad or what else could it be??

 

sounds like you got ripped off to me. maybe they threw on the old headgasket and walked off with an extra 60 bux!

 

Does it smoke all the time or only during start up?

 

white somke = coolent in combustion chamber
black smoke = running rich
blue smoke = motor eating oil

 

If it smokes blue (grey?) at low engine speeds and after idling - valve seals
If it smokes blue at high engine speeds - rings
If it smokes blue all the time - likely a bad component (or both of the above)

I had a similar problem (https://honda-tech.com/zerothread?id=1954758) and it turned out to be a bad head. See if the oil that is getting into your cylinders has any water in it (mine did). If it doesn't, then focus on rings and valve seals. If it does, then focus on block, head, and sealing surface (gasket, bolts, correct torque).