It's smokin' ...literally
 

My 86 Carerra has been doing this for a while but the condition has gotten worse in the last month.

The car does not smoke on start up or when cold, but once warmed up when idling, sitting at a stop light, a substantial amount of smoke emanates from the exhaust pipe. It does not smell of oil really and the color is grey. The car runs fine no missing or hesitation. I installed a new O2 sensor last year. I have fixed the oil leak and there are no evidence of new drips on pan under the car. Ok let the fun begin;)

Did you overfill the oil tank?

Dave's suggestion is an excellent one and the very first thing to check. :)

If the oil level proves to be spot-on (middle of range on dipstick), I'd recommend a leakdown test as you didn't say how many miles are on your car.

Oil level is in the bottom 1/2 of the range. Will do a leak down check this weekend. The car has 110K miles.

Is this a symptom of the infamous Carrera valve guides? :?

On the dipstick or on the gauge? Engine warm or cold? Level ground? Just want to make sure the basics are understood ;) Sorry to hear of your mosquito killing plumes of smoke.

Oil level via dipstick, warm engine, level gound.

The smoke really becomes noticable when driving around town in traffic, coming to a stop to wait for a traffic light, when the engine is warm.

Leakdowns will tell you something. Might want to bring it in to a shop for that.

I pulled the plugs out of cylinders 1-3 and all plugs showed no abnormal wear conditions. This picture is typical of all three and this is the plug from #2.

Chris,
Your not running anything silly like 5W -20 synthetic are you?