Hey man, sorry to hear about your difficulties. If I were you I would test the compression. I am fortunate enough to have a compression tester but I think you should be able to rent one it you don't own one or have a friend that does. Clean the engine thoroughly, especially around the spark plugs so no junk falls into the cylinders. Break the plugs loose while the engine is cool to make sure you are not going to have problems with them once it's warm. Snug them back up temporarily, then warm it up to operating temp then pull all of the plugs out and disable the PCM so it will not inject fuel nor spark the plugs. I did this on our 90 Camry by pulling the fuse for the PCM, I am sorry but I can't remember how it was marked at the moment. There is a site called
Camry Stuff or something like that that has the Factory Service Manuals that should outline the procedure. You don't want the injectors working because it is dangerous to have all the atomized fuel in the air and you don't want it turning to liquid in the cylinder and washing all the oil off of the cylinder walls, it will cause serious scoring of the cylinder walls.
Don't skip that step, please!
Screw in the tester and crank with
Wide Open Throttle several revolutions each cylinder. Write down each reading, don't trust your memory. Next squirt some CLEAN motor oil in the cylinder, not a bunch cuz' it's bad for your catalytic(s) and run each cylinder again right after you put the oil in. Don't oil them all and then test, oil, test, move to the next and repeat. Again, write down results! Compare the oiled vs dry and see how much it changed. I am rusty with all of the numbers but the Factory Service Manual should give you all of the parameters but rough numbers off the top of my head would say you should see about 100 to 120 psi compression, no more than 5% or so variation cylinder to cylinder and if you see one(s) that is (are) low and come up significantly with oil, then you've got broken rings and/or scored cylinder walls. If they don't improve with oil then that would indicate poor sealing valves, bent or burned, which is probably not an issue for you since you are suspicious of blow-by but keep it in mind.
Now, what you are describing, smoke at start-up, is indicative of worn valve
seals, which keep the engine oil that is up around the camshaft from making it's way into the combustion chamber. However, that shouldn't be mucking up your air cleaner. Do you know if you are still getting oil in the air cleaner since you have changed the PCV?
I can't see how the guy could have been hiding this either but you're right, these things don't usually just pop up out of nowhere. Typically broken rings, bent valves, etc. are a result of severe overheating or running low on oil, something you would have been aware of.
Maybe it has something to do with the car sitting for so long last year. Hopefully you can get it "cleaned out" somehow and it will be a nice dependable car for you. I have little experience with vehicles that have been in storage, so to speak.
Good luck to you, let me know if I can help,
Gary B