It definitely smells like oil. I did break the engine in properly for 20 minutes and used break in oil. Then after break in took it for about a 10 mile drive. I got home and shut it off for about 15 minutes until a friend came over and wanted to hear it. I started it up and let it idle. Then gave it a quick rev to about 3k. We heard a loud noise from the engine area. I shut the car off, looked around and couldnt find any thing. I started it back up and ran fine. I did pull the first set of plugs and they were all carboned up and assumed this was because we didnt have the carb or timing set right yet. That is when I installed the set of plugs I just pulled out today.
All of the other cylinders looked good and the plugs looked normal. It was just this one cylinder that is still all nasty looking. Oh and I also did a compression check on all the cylinders. They all ranged from 140-150.