Hello again.
So first of all, I want to apologize to 32ac,
There are in fact no valve stem oil seals on the GTC engines
The seals are on the camshaft ends, and that was my mistake.
Today I popped the head off the engine and took out the valves.
Both valves and sleeves are exactly 7/16", however I noticed that the exhaust valve was sticking.
The problem appears to be " the green goblin".
By that I mean the green paint that is slobbered over everything in these Indian engines.
The paint was 1/2" down the valve stem and there were flakes of paint all over the top of the valve head.
The exhaust valve had terrible scoring due to this and that must be where the oil was going.
The guides seemed unaffected, so the valve stems must be softer than the guides?
After cleaning everything up and removing as much paint as possible, I test fit some new spare valves and they seemed a nice fit.
The piston crown was 75% clean, and most carbon was towards the exhaust valve, so I think that the scoring must have been the problem..
So... Reassembled everything with the new valves and head gasket and then placed a .177 flat nosed air rifle pellet on the piston to measure head clearance.
The head clearance was spot on after checking so I fastened it all back up and it started first time.
Minimal smoke at start up but gone after a few minutes,
The engine now has been running for five hours, and is at 200f,(warmer than before) and almost no smoke at 75% load
Interesting note, after the fact, but the engine always seemed to struggle when the ccv was changed to low compression, now it runs fine on low compression. So the exhaust valve must have been sticking from new.
Lesson for myself today...don't assume a new engine is ok till I've been inside and actually proved it so. And check facts before stating something that is incorrect*( sorry 38ac).
Thanks to everyone for the comments, it always helps motivate to action that which needs to be done!