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I have a new engine that smokes too. It only starts smoking as the temps come up. I too was thinking the rings never seated. But then I read about the intake sealing issue as copo9560 mentioned. I am going to try looking at that first as maybe you should. Easier than a total disassembly.

That said, I have always broke in my engines at the typical 2,000 RPM for 30-45 minutes. I recently read that a better approach would be to run it for only 15 minutes to break in the cam and then drive it under a load to seat the rings. Just running it with no load for up to an hour just glazes the cylinder walls. However, I don't ever remember having a ring seal issue with my method.

But, if you do decide to do a hone, better described as deglazing, a 400 grit ball hone will do the trick, assuming you are using moly rings. Just a few passes are needed to remove the glaze and to get the correct pattern. I have also read that some do a plateau pass with a courser grit, (I think), with a straight stone hone to flatten the peaks of the finish.

All of this info is just my opinion with my relatively limited experience in building engines.
 
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