Update
I re-located the autometer's sending unit, and capped off the carb preheating hoses.
So far so good. I ran it for around 8 minutes, by 5 minutes the autometer gauge read 150-160 degrees and stayed there. I still have the thermostat out like yesterday afternoon. The engine seemed a lot happier at that temp, finally allowed me to rev it up a little easier than normal(carbs aren't sync'd and it will usually putter out when i try to give it gas) but I still seem to be cooking my oil a little, when I shut her down after 8 minutes I pulled the oil cap off and got a small steady stream of smoke like all the times before.
It isnt acting like it did yesterday, so I'm not sure what to make of it. There's a possibility that the carb pre heater hoses had something to do with it since that is really the only thing I've changed. I had bought a second water pump just in case, but have not put it on yet. I am concerned that the problem may come back though.
As for the smoke from the valve cover, I am going to re-adjust the rocker arm clearances, being that this was my spare head, i know they arent right and that may be the cause of the smoke. *edit* might be blowby from the rings *end edit*
I dont have much more time to mess with it today, and it's not really fixed yet, but I will probably be doing more problem solving most of tomorrow.