If it is smoking, you more than likely have some bad piston rings and/or destroyed valve seals. Does it smoke non stop or does it only smoke on a cold start up and high rpm driving?
Either way, you will be looking at some intensive repairs for the engine.
Best of luck! I'm sure some more knowledgeable people will chime in soon. These forums are D.E.A.D. after 11pm Central Time. :wave:
EDIT: I suppose I can add some more useful info while I'm here...
To find out if you have bad rings, you can confirm this by doing a compression test on each cylinder. If I remember correctly (SHOForum, correct me if I am wrong), you should see a minimum of 180psi per cylinder. If you are getting a reading substantially lower than this number, pour some regular engine oil into the plug well and test again. If the psi readout rises quite a bit, you have bad rings.
If you have bad valve seals, you will notice tons of blue smoke spitting out of your during cold starts as well as during high(er) rpm driving. I had some bad valve seals on my previous SHO and when I started her up after having it sit in the college parking lot all day, she would spit blue smoke out the exhaust for a good 3-4 seconds. Even worse, merging onto the highway... During a WOT shift, my car looked like something out of a James Bond movie as I shot a smoke screen of blue smoke towards the cars behind me.
Do you have any external oil leaks that you can tell? Some common areas to look are in the spark plug wells, valve cover gaskets, and the front main seal around the crankshaft. How many miles are on this engine? Do you know if it has had any major maintanence performed on it recently? What type of oil are you using?
EDIT 2:
Found a video of a member here (93rev2sev) doing a compression test on his SHO engine.
[YOUTUBE]NUHHBd67tic[/YOUTUBE]
Notice how the first test he only got around 140psi. After adding some oil, it bumped up to around 170-180ish. That is a sign of a bad ring.
Your engine does not make any out of the ordinary knocking/ticking/slapping/fapping

snicker: ) noises, does it?