Well, finally got a leak down test done and found #2 cyl had a burnt valve. the bad news is the mechanic said the cylinders are grooved enough to suggest a rebuild.  Looks like now the probllem was low compression causing the hard start, smoke, no power, etc.  This is not what I wanted to hear, but the mystery is now solved.  The repair bill will be about $6000, so I not sure if I want to spend that much on it.  I wonder what might be the smart thing to do?  Mass rebuilder, engine swap with a later model engine (what engine)? Part it out? Convert to gas?  If any body has a good engine and wants a great 88 standard in great shape please contact me.  Thanks for everyone's ideas.