Yeah it does, smokes only at startup and yes I am the new owner it has a new pcv valve I don't know what the China Rail is...though I do see that the valve covers are pretty greasy as well doesn't look as fresh as the stuff on the back though. Almost all of the grease is on the back of the engine has it on the bottom as well.
Sorry, the China rail is the machined part of the block that the intake sits on. Here is a photo from my 5.7 from my ‘95.
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There is a layer of RTV that is put on those rails, no gasket. In my photo you can see some of the old RTV.
If you notice a puff of smoke on start up it’s more than likely that your valve seals have gone bad and allowing oil to get past them, burnt, then out the exhaust.