1G Trouble shoot assistance needed

[Alpha D]

As some may know, i bought a dsm from a fellow Mitsu Style member. Like almost all DSMs though, it has issues. It is a 1991 Talon TSI AWD TURBO. The motor was has been fully rebuilt(supposedly at least). The mod list goes as:

Engine :
Stock Rebuilt 6 Bolt Block (Ceramic Paint Coated)
ARP Headstuds
Balance Shafts Eliminated
ZERO miles on rebuilt motor

Exhaust :
Ported 2G 02 Housing (Ceramic Paint Coated)
2.5" Custom Straight Turboback Exhaust w/Magnaflow Muffler
*come with stock 1G exhaust manifold.


Intake:
3" Short Ram Intake Pipe (Ceramic Paint Coated)
Ported MHI Evo 3 16G Turbocharger
3G 501 MAS
QPR Throttle Body FIAV Blockoff Plates

Fuel:
560CC EVO VIII Injectors (Some of them leaked i ordered the new seals and properly installed them. They do not leak anymore)
Walbro 190 LPH Fuel Pump*

Electronics:
Eprom ECU w/Keydiver Chip
TurboSmart Boost Tee MBC

Drivetrain:
ACT 2600 Clutch Kit
Roller Skate Shifter Bearings
Non-Cruise Shifter Cable

Miscellaneous:
FIAV Eliminated
Emissions Eliminated
A/C Eliminated
Cruise Control Eliminated
Catalytic Converter Eliminated

*There are more mods that have to do with interior and suspensions. I didn't add it though, because I don't think it will help solve the problem*

According to the seller the only issues that need to be fixed, in order for it to be drivable, was a boost leak which was due to a faulty intake manifold, and injectors. So we Flat bedded the car to a friends garage. Jump started the car. The list starts from there.

Issues
1)The car idles horribly.
We fixed the intake leak, purchased new O-rings and seals for the injectors (Mitsubishi dealership parts), but the car still idles like crap. The car holds it's idle at 500rpm even when we tried adjusting the BISS screw. After adjusting the BISS screw, it would jump up to 1300rpm. We steadily lowered the rpm to about 1100 rpm (Anything under 1100 and it will go straight to about 450-500rpm)

2) The car produces an exponential amount of smoke from the exhaust pipe(we were told it is because it's running EXTREMELY rich) as well as from the oil cap(when opened). We do believe that it's running very rich, but why? The smoke starts as a bit whitish, but turns bluish. As if it was burning oil. It literally pours smoke. It will drip black colored fluid out the exhaust tip, as well as shoot it a distance of roughly 3feet.( Contacted the seller about it as well, according to him it is due to the carbon build up and condensation) At one time we opened the the oil cap to take a look at what was going on while the car idled. As soon as we opened it a pressurized amount of smoke (grayish color) went shooting up into the hood. You can smell a strong scent of gas. The smoke would continue to rise out the valve cover for close two 20minutes. The car idled for only 3 to 4 minutes at max. The smoke would continue to rise out the valve cover from the oil cap opening for 20minutes.When i pulled the dipstick to check the texture of the oil. It was not slippery, more like slightly gripe.

3) Car won't go into reverse.
The seller did not mention anything about the transmission. This isn't something I'm too worried about. We have been told that it might be due to the shifter linkage. Until we do that though, we won't know for sure. It could be the synchros as well. It does shift smoothly and quickly into all the other gears 1 2 3 4 5 except for reverse. (This is at a dead stop)

4) When we turned the vehicle of after approximately 30seconds a knocking noise will start. It continues in a timely manner. In a interval of about 7seconds ting......ting.......ting........ I have no idea what it could be.

Overall, I have tried to be as descriptive as possible. I do apologize for the lengthy paragraphs. As well as for any and all points that are not clear. I am really hoping it is something simple, and the car will run great. Exactly how the seller signed in the contract. It has cost much more than we had expected. Also funds are low. Thanks in advance for all the suggestions.

The slightest hints are appreciated. In addition i have not ran a compression test, leak down test, or checked for proper timing on the vehicle. The fuel system has not been pressure tested neither.