Classic/Antique Car Repair: 1972 chrysler newport, chrysler newport, valve seals

Question
Hi there,
I recently picked up a 72 Chrysler newport, 400 BB. for $500. I plan on putting in a new 4 bbl. Now the cars been sitting for about 10 years and was having trouble with the old carb. basically it would keep stalling. so im going to just replace it. Now i got it running fairly good, with new plugs and wires, flushed the tank, changed the oil etc.. but when i put a new fuel pump in it has started to blow a ton of smoke, and smells real fumey. the smoke is mostly bluish grey. and there is always dirty water coming out the pipe.It may be the guide valve seals. What do you think? is there anything else i should be aware of? is putting a bigger intake and carb on it going to be harmful?  thanks for your time.  

Answer
Matt;
It could be the valve seals dried up.  I would get some motor cleaner that you add to the oil, than  drain it out and put in a new filter and oil and a can of stp. also see if you can find a can of seal treatment or motor treatment that you add to the oil  this all might get the motor back into shape , prior to doing a valve job or seals. it must be full of carbon and gook from sitting.  the carb, if its the old 10 year one might be doing it with all the smoke, is the choke sticking ? also get a can of carb spray   . cleaner and spray clean it up good in and out.change the fuel filter and check the PCV valve if it has one  . and flush the cooling system out good. ok