Some smoke will be normal on a rebuild depending on your assembly lube.I also agree with Redracer the spark arrester and baffle may have oil still in it and that can take some time to work itself out.
Two to five hundred miles is frequently required to completely break-in a four stroke.The smoke should be gone at this point. I dump the oil and filter in a four stroke after the first 75 miles, again at 200 miles, 500 miles, 1000 miles and each 1500 miles
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