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I'm continuing my restoration project and not only does it smoke a bit out the exhaust but also out of the tube coming from the side lifter cover. I'm guessing that this would be a bad valve seal and probably valve guides any suggestions on fixes or has anyone had this issue with their inline 327 8. I'm going to take off the covers and see where it is coming from but that will still not help on how to fix the issue.

Most likely blowby from the rings. A little is normal in all engines. If the rings are worn or perhaps stuck from sitting, quantity will be greater and more noticeable when car is not moving. It would normally be sucked out via the road draft tube when driving and you probably would not have noticed it as much until engine was stopped and it came out the oil filler cap vent. Options are to drive and see it it gets better with use, if not then probably a ring job if really bad. There are some snake oils that promise some relief but have not used any personally.

Your car was made before PCV valves (positive crankcase ventilation) became mandatory.

It has what is called a road draft tube. Fresh air goes in the filter on the oil fill pipe and fumes come out the road draft tube. A small amount of smoke is normal. It should not be noticeable with the hood closed unless the motor is badly worn.

It seems like the motor may be a bit worn as in looking at the draft tube it pulses smoke out of the pipe at idle. I've been trying to just drive it and hope that things get better. Currently this hasn't been working well as it isn't getting better and I'm trying to get it to a point where I can trust the car on the road. I may need to adjust the carburetor too as in coming to a stop it may die out. Sometime it starts back up but there has been two instances were I needed to wait a while then eventually able to start up. I had the generator rebuild and am still running the 6 Volt positive ground system so there are mixes of enjoyment and frustration.

What you're probably seeing is normal. I notice it more when cold on my 327, but it's never anything crazy. If you're snake oiling it (seafoam, etc.) you'll see it a lot until you drive that stuff out of your system. Take a pic or make a video so we can see, but it's probably fine. Again, you won't notice it when the hood is shut.

Take some compression readings if you're worried about rings.

I'm trying bg 44k to see if it frees anything up. Gave engine restore a shot then lucas which did make it run smoother. Might end up having to pull head and check things.

My Friend how many miles are on the engine, and run a compression check on each cylinder and see what you come up with there, that will tell if your rings are shot and what coarse you must take Dale

The speedometer list a bit over 60,000 but it also is not working right not so was thinking about sending it over to Bobs a place I found online. So not really sure how many miles. I was running low on I think 6 and 7 which makes me think head gasket issue but with excessive smoke coming from the draft tube that would probably still be pistons. I don't remember the exact numbers but defiantly under 100 but haven't tested since I got it running. I did the test when I was having issue when it wasn't able to start.

If the car has been out of commission for years it may take a few hundred, or a few thousand miles of driving for it to return to normal. In the meantime it may smoke a bit.

Do a compression test if you are worried. A compression test, and oil pressure readings will tell you the condition of the rings, bearings and pistons.

I'll have to check the compression again to see if it is getting better and to do the oil pressure test. The oil light doesn't come on so I think that is a good thing. I think it has been out of commission since 96-98 definitely making progress but still frustrating too.