There's more going on here than meets the eye. One qt low shouldn't disable starting. Now that it's running that's a mystery. The smoke at 2500rpm may just be the a weak link gave up. Engines don't like no-load high revs but that much shouldn't hurt a good engine. That kind of suggests a head gasket problem?? Does it still smoke out tailpipe?
T
Tom Greenleaf - MetroWest Boston - USA
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http://www.autoacsystems.com/tomgreenleaf/