Auto Parts: toyota repair, smoke stains, valve seals

Question
I have a 1999 Toyota Corolla that is burning oil, about 2 quarts per 1000 miles. It emits a puff of smoke when I fist start up, but after that you don't see smoke. However when you put your finger inside the tail pipe, it comes out with dark smoke stains. I was told by the mechanic who inspected the problem that it has worn valve seals, and needs a cylinder gasket replacement. He said the compression is fine, but could not tell me how the oil rings are. How likely is it that it has worn rings, and will turn out to need an entire new engine?

Answer
    A quart every five hundred miles is actually within the tolerances set for a lot of cars when they are new.  But not a Toyota.  Valve seals can cause that puff on startup, but they would have to be very worn indeed in order cause this much use.  That leads me to believe that the oil control rings are shot.  Of course, at that rate of consumption, it could be just one.  I would be tempted to try the product called RESTORE, available at most big parts chains.  I am not a big fan of oil additives (we parts guys call them "mechanic in a can"), but I have heard so many people say how wonderful this stuff is that I would try it in your situation.  If it doesn't work, you're only out a couple of bucks.  You could then have the head off for new seals, which would give you a chance to examine the cylinder walls for scarring.  If they all look OK, and you still have oil consumption after fixing the head, you will have to decide on replacing the rings in on old engine (usually not a good idea), or getting a new short block, which will cost a lot.  The car isn't super old, so, if it's otherwise in good shape, I'd be tempted to keep driving it and see if the problem gets worse, then put in a nice used engine from Japan.  They can be had with very low mileage, due to a quirk in Japan's road tax laws, and will see as far down the road or farther than your original engine.