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Now that everything is buttoned back up and the engine seemingly OK, check the timing marks one last time and with the engine warm, check the compression. The VVT requires that your line up the crank mark, continue to move the crank 90 degrees past the mark, and then move the crank back to the mark. That additional movement removes the tension on the VVT so the alignment can be made visually.
I agree, the smoke from the rear of the engine block might just be 'burn off' of some residue or cleaner. If it doesn't smoke anymore, then put that problem on the bottom of your list.
The exhaust smoking? That could very well be a muffler full of water. I have seen American V8 cars going slightly up hill and under throttle, push a quart of water out of the exhaust. It is amazing how much water a muffler can hold and still allow exhaust through.
Good job. Is this a donor car head or did you manage to 'fix' the cam journals?
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My name is Klaus and I am a V♂lv♂holic
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