Motorcycle Repair: 883custom using oil, traffic jams, leak down test


Question
I have a 2004 883custom that I purchased from an HD dealer in the Phoenix AZ area with 5200 miles about 2 months ago. It seems to be using about a quart of oil every 400 - 500 miles.
Plugs seems OK. Dealer had it at 7200 miles and did oil and filter change. They also did compression test (168 front and 170 rear) and leak down test (between 6 and 8 percent) They offered no other explanation other than to ask me to come back at 400 mile interval and let them check the oil again. It has been 200 miles so far and bike has used about 1/3 quart of oil.
Is there something else I should be asking them to check?
Bike runs well, mileage is good. Doesn't seem to smoke but I did notice once or twice when I first got the bike it made a little smoke when stuck in 120 degree traffic jams a couple of times. Exhaust is 2 into 1 and is just slightly sooty at tip of exhaust.
Also notice a tendency to ping a little under moderate to heavy acceleration. They advised to just "use" the camshaft a little more and keep revs up. Is there a timing adjustment on this bike? Other than factory manuals are there any good publications on 883's out there?  

Answer
That is quit of oil uaage. A new bike does use oil a little, but with that many miles it shouldnt.
the only place oil can go is either a leak, which you would see, or int he cylinder. It can get past the rings, or past a broken valve guide seal. I would have the dealer fix it or give me my money back.
Good luck and happy riding
Mike