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Sounds to me that you have a couple bad exhaust valves... Just my guess. How many miles are on the engine? Try seafoam in the oil.... Drain just enough oil to get the whole can of seafoam in it. Then drive for 20 miles lightly. After you have done that change the oil and get ready to see the mess in the engine drain out. I drove mine about 100 miles, but it had been sitting in my dads yard for about 3 years. These 3cyl are known for burning valves. What is your timing set at? (how many degrees?) what grade gas are you running in it? Pull a compression test?
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