A couple of thoughts regarding the smoke. While white smoke is the sign of coolant leaking into the combustion chambers, I find that much more noticeable at low throttle when there is high vacuum wanting to pull the coolant into the cylinders rather than at wot when there is little vacuum.
Many times, the smoke from burning oil is a very light color, and that is much more likely to occur at wot than at low throttle position.
The fact that he says it burns oil and smokes, suggests to me that it is oil burning rather than coolant.
These engines are very prone to sticky rings, due to their low tension ring setup. If the previous owners were not so good at changing oil, there is a very good change that the ring lands are all carboned up and the rings are sticky. The good news is that many guys have pulled the engine apart, removed the rings, cleaned them up and put the same rings back in w/o even honing the cylinders and made the engine stop burning oil and perform like it should. With 200k+, I'm willing to bet that is the real problem.