So I picked up a 87 350 bored .40 over. Took it all the way down and did all the gaskets. Everything checked out fine. Good clean engine from what I saw. Put it all back in the car and for some time I ran it without the valve covers to make sure it was getting primed right. Was making sure I was getting oil up though all the push rods. So it smoked for awhile but that has been some time ago and all that oil has burned off. But after warm up, I get a steady smoke coming from around where the header meets the head on the 8th cylinder. It appears that it's coming from the spark plug area, pulled the plug and I just saw oil on the threads. Very faint though. I believe that was even from when I ran it with no covers however. Other than this the engine runs perfectly fine. Steady 60psi when starting it up then drops down to about 45 or so when warms up. Also I do get a little smoke out of the exhaust on that same side. Not your typical smoke for a head gasket or a ring, but like a burning type.

Here's a picture of the area. From the bottom of where the last header pipe meets the head. This is on the wrong side but same concept. Thanks for any help!!

 

Use a dead soft aluminum gasket - they are thick and get squished thus stopping the leaks - on the shelf at autozone.

 

Funny you say that cause that's what I purchased.
however, I do have a loose bolt on that very end. It's practically finger loose since I couldn't get back there.