Need help diagnosing engine!

After getting the car back together, the engine now has a few issues. First, there seems to be an excessive amount of blow-bye, enough to blow the dipstick out at WOT. It appears the left side of the exhaust is smoking a little, but not real excessively. And lastly, when cold, the engine sounds like it's knocking when revved (this seems to disappear once it warms up). My friend said the rod bearing on #7 looked great and reinstalled it as he saw no need to change it given its condition and low mileage.
I did a compression check on the engine over the weekend to see if that would tell me anything and I was shocked at the results. Numbers 2, 4, 6, and 8 were all exactly 165#. Numbers 1, 3, 5, and 7 were 90#, 100#, 90#, and 120# respectively. FWIW, the two readings at 90# both held the pressure for about 15 minutes while I waited out rain showers. Before #7 went, the compression was 160 to 165 across the board. After I told my mechanic about the entire side being low on compression, he said he has no idea what it could be as he said everything bolts together in a straight forward manor having no adjustments which he could have messed up... you guys would know more about the validity of that statement than I would.
Obviously something isn't right and the engine has to come apart again. Based on the info I provided, does anyone have any ideas regarding what's wrong? I find it very hard to believe the entire left side of the engine was damaged when #7 went, especially since it looked great when we took it apart. Could it be a head gasket issue (new stock gasket) or the way it was installed? What about a cam or rocker issue?
Any insight would be greatly appreciated!
Did you replace the rings?
How thoroughly did you check the cylinder walls for scoring?
How many miles on the engine before the rebuild and what kinda boost were you running?
A whole side of an engine with low pressure is the head gasket. Did he reuse the stock gaskets, or the stock head bolts? The bolts are torque to yield, meaning that they cannot be reused. How did he torque the bolts down? There's a torque sequence.





