Run Ronnie Run....

Alright..... well I changed the oil and filter to what you guys recommended... (thanks). I also did a compression test again with differing results. I am not sure if it is user error... (had throttle wide open/ all spark plugs out/ kickstarted a couple times until max)... or the result of an inexpensive compression tester.
Fisrt off though.... I was kinda freaked out when I first saw all the smoke but now after being more diagnostic about it all.. I am seeing smoke mainly out of the baffles and that area. It is also happening once the exhaust starts getting hot which makes me wonder if since the bike has sat for so long if it is just burning off debris from time? The Exhaust is also kinda rusty where it comes off the engine and the rust is diminishing every time I run it... where there was smoke coming off the exhaust on cylinder 4... it has lessened.

But the compression tests are:
Cold Engine (sitting in sun all afternoon):
#1:70
#2: 155
#3: 160
#4: 155
Hot Engine dry:
#1: 70
#2: 120
#3: 130
#4: 130
Hot Engine wet:
#1: 70
#2: 140
#3: 155
#4: 160
When I say hot engine, I ran the engine for about 5 minutes, changed the oil and filter and then removed the spark plugs and started compression... so it wasnt a 50mile run hot.. but... it was warm
So this makes me think.... #1 is bad and needs valve work? (valve could be hanging open or debris on valve?) And do all the rings need service?

Here is what can be said. You have a problem in your cylinder head... valve isn't sealing. I can't recall as this thread is pretty long but I would adjust valve clearances; especially #1 cylinder IF that has not already been done. If it has, and there is no visible sign of a major leak in the head gasket, then I would remove the head and disassemble the #1 intake and exhaust valves and figure out what the problem is. Could be a bad guide, crud not allowing a seal or a worn seat. If you have adjust this valve, what was the clearance? If the clearance was towards the middle of the range (200-300 range so middle would be 230-270 shim used), then you probably have either a bad guide or very dirty combustion chamber. OK... say you fix the problem. Since so much compression was leaking out during your "oil" test, you really never proved whether you had a good ring seal. You have a choice... yank the block and measure the pistons diameter and bore diameter to see if you are in spec and examine the cylinder liner to see if there is major rust rings or something that would ruin seal or just try your luck and put the head back on without disturbing the pistons/rings. I would do the latter since you had good compression in the other cylinders and good seal as indicated by the smallish jump in compression when you added oil... After reassembly, you should recheck compression and if you find a problem in #1 seal, you can get mad at me... but that is what I would do... The cost of new rings for your bike is kind of steep so I would chance they are OK and be willing to buy a couple new gaskets if I were wrong PLUS the rings... I doubt the bore and piston on #1 are worn much more than the other cylinders.