So I let the car run while there was lots of smoke in the engine compartment and at the exhaust pipe. After about 5 minutes the smoke pretty much stopped so I think a bunch of crap had to burn off and then things were fine. I let it go through 2 fan cycles and that worked fine as well. The engine idled smooth and I even fixed the coolant leak I had which is great!

BUT... the big BUT... after I stopped the car I noticed a puddle of oil on the ground under the bell housing area. This didn't happen before. My thinking is that I didn't torque the head bolts down completely because I was really scared of breaking another one off. I torqued them to about 51 ft/lbs and didn't go up to the 61 ft/lbs it's supposed to be. So I probably had oil seeping out of the back of the head near the firewall, around the bell housing area and onto the ground.

My plan is to remove the head studs and replace with the proper bolts (one at a time!) and torque down to 61 ft/lbs this time.

Here's a few pictures and links to a few videos.

The engine near the bell housing area...



The smoking engine before everything burns off (new timing belt working well)...

http://www.youtube.com/watch?v=h9iAXP_C0BQ

After everything burns off, engine shutdown, fan cycles down.

http://www.youtube.com/watch?v=-HtClvHBRV0

The oil leak after shutdown (drilling from near bell housing area).

http://www.youtube.com/watch?v=vF8g1RChilY

Turns out that the bolt on the back of the camshaft housing cover was really loose and oil was coming out of there. Now that's fixed there is no more oil leak. Woohoo!