Same issue!
I have the same problem with my 87 GT I am resurecting from the dead. Heavy blue cloud on acceleration, then mellows a bit. LARGE oil consumption.... Plugs are fine (actually got 27mpg on the first test run), oily residue in intake, did a compression test, consistent 230 on the back bank, and a consistent 130 on the front bank???? I decided to pull the heads (what a PAIN!!!). Some of the cylinders had a lot of carbon. I dropped the heads off at a cylinder head repair shop yesterday. Looks like if there is nothing major, will be about $300. Hopefully there are some bad guides that allowed the oil to get into the exhaust ports....
Next delima: Should I do anything with the bottom end? I don't particularily want to drop the engine... The is a slight ridge on some of the cylinders, but NO scoring. Anyone have any recomendations?