If it was a valve problem you wouldnt be getting that much smoke out of the exhaust. Sounds like a ring problem. I would start by pulling the head and the piston out of that cylinder. Could be your PTW clearance was to tight or the ring gap wasnt large enough.

98 Eclipse GS Turbo
Built motor - MS2 - Holset hy35 - Zoom Stg 4 Clutch - 57.5mm TB - ARP Headstuds - Turbonetics wastegate - 3" Turbo back - FMIC - Greddy RZ BOV - Walbro 255 - 650cc Injectors - Fidanza Flywheel - Cobra calipers w/ 13" Rotors - Oil Cooler - DevilsOwn meth injection

1981 Chevy Scottsdale
1987 Nissan 300zx - Chump Car
2001 BMW 325i