Wow if you can get enough oil in your cyls to hydro lock the motor then I dont think rings would be the issue because bad rings would let the oil blow back into the crank case. Now 140 does seem low for the compression, but I cant remember what the specs for the engine are, I know I get 180 from my na and 165 from my turbo engine. I would suspect valve seals, but wait there should not be enough oil around the valve seal to hydro lock the motor, so I am wondering if you dont have some blocked oil return galleys in the engine. The valve seals are not very easy to replace in a way, in another way they are. I had to do mine twice in a few weeks due to having gotten bad cometic seals. The felpros I put in are doing great. Btw white smoke is normally coolant, but if you burn enough oil it burns white, burning some oil is bluish gray, but burning massive amounts will make it white, trust me I know what very bad valve seals smoke like, and what its like to blow the turbo seals.
First off to test to see if the oil returns are clogged, take the valve covers off and pour oil onto the cam area, if it puddles and lot and does not drain off down the holes that could be your problem.
To do the valve seals in the car you need a good air compressor and the compression tester fitting to the plug hole. install the tester and hook compressed air to the hose from it. Obviously the cams have to be out for this, and all valves will be closed. I use 120psi on the cyls to hold them closed, but was fine down to 60psi when my compressor failed. You will need a valve spring compressor that bolts from the top of the head, it will bolt into the cam cover bolt holes, and you use the arm to press the valve spring down. You will need a good high power magnet pen and some lithium grease.
Press the valve spring down and use the magnet to remove the keepers, well after removing the lifter buckets that is. Then pull the spring out and you can see the seal. You will have to get or make a valve stem seal puller, I just made my own from sheet steel. Just two hooks of even length one on each side. Be careful not to scratch the valve itself. Put the valve "condom" (seal protector) on the valve before installing the new seal then push it down until it clicks, have to use an installer or a right size socket for this. Just dont push too hard on the valve seals, and make sure the piston on the cyl you are working on is up so if you do drop a valve it will hit the piston and not fall into the engine.
After getting all the stuff back in ie springs ect, use the spring compressor to push the spring down. Add a good amount of silicon grease or other thick grease to the keepers, this will let them " hold on to the valve as you try to install them in place. Its a lot of work, and a pita if you release the spring with the keeper not seated, they go flying and you probably wont find them, or they can drop down the oil returns so cover them with rags or whatever.
Just so you know I am a master tech and have done most any job you can imagine and have worked on a lot of 7ms, it takes me 1.2hr to pull a motor and trans from one, but it took me 7 hours to replace the valve seals. While rebuilding the engine in my car I asked the machine show what they would charge me to replace the valve seals in my head while doing the machine work and was told $600 to do the seals, and that was with the head off the car and clean so yea the $800 sounds right. If you are not mechanically inclined I would have a shop do it.
Hope that helps. Btw, if you are burning a lot of oil you might not be getting a good reading from the o2 or wideband because it will be coated and not getting a good air reading.