So I just replaced the head gasket, and now when I start the car I see small amount of white smoke when I rev the engine I see excessive white smoke. I can also see little splats of oil coming from the tail pipe. Also the compression is low in cylinder number 1 and fine in the other ones (2 3 4). Any ideas of what the problem is or where to start looking?
It depends on how low the compression is. If it is low in #1 it can be rings or valves. I'd say it's either a ring problem or the head gasket wasn't installed properly. By not checking for flatness on the head/block mating surface you may have just changed the head gasket for nothing. If your car has cast iron pisotn rings they wear the cylinder heavily and you would most likely see a heavy ridge near the top of the block.