Catalytic converters "trim" off the HC, Nox, CO2 emissions that were not taken care of by normal emission sytem components controlled by the computer. Like the O2 sensor (unless heated), the cat needs some run time as it works best when hot. The five gas analyzer used for emmission inpections are just that, gas analyzers. Oil smoke is a measure of particulates (deisel engines use opacity meters for particulates and don't create HC and CO as much as a gas engine as thier is no restriction in the intake, no butterfly, so oil burners use a different test) and not measured by a gas analyzer, it won't see the disgusting smoke. The problem from this point is low compression caused by the components you mentioned above. Those components will cause high HC by allowing unburned, or partially burned fuel to get to the end of the tailpipe. High HC can also show high CO.
Put in new plugs, dump some <a href="http://www.seafoamsales.com/">seafoam</a> into the throttle body, or vacuum line from the booster depending on your injection system until you can kill the engine, (read the directions) dump the other half can into the crankcase. This will free up stuck rings, lifters. Go for a drive. Get the engine to operating temperature, don't idle in the line, You might fail anyway, but then you can apply for a waiver depending on the state in which you live. Tell us the year of the vehicle, and the state you are in. (I mean't geograpical location). All might not be lost, as I said, burning oil produces particulates that the gas analyzer won't care about. Please see my credentials in the "who are professional mechanics list" and private message me with your readouts. We can go from there.
BTW, HEET say's it is safe for your cat. I just don't understand the point of using it if your fuel lines are not frozen. Do the Sea Foam, and lets talk privately. I can always try to help a member!
