I have always loved the toyota 4wd truck. My father has had several and at a younger age, I steered clear of the pickup scene and went to small sport compact car modifying. While working on my old mans tacoma a couple of years ago, I was searching online when I found out there was a turbo 22re offered an a 4wd Pickup made by toyota. I knew someday I would have one. Living where I do(ND), It was quite a manifest to put myself on. A couple weeks ago, I was talking about my turbo setup on my 91 Civic Hatch, when a supervisor asked me if I knew anyone who was looking for a cheap fixer turbo 4wd. I ended up buy it a couple days ago, and I am now the proud owner of a loaded turbo toyota 4x4. I picked it up for 400 bucks. I was told it ate coolant and he thought it needed a head gasket. I drained about 7-8 quartz of white milky oil/coolant out of the engine. I filled the truck with oil and topped off the coolant. She started right up and drove fine. I tested it to make sure the 4wd and ECT worked, along with all of the gears. Everything checked out so I shut it off and towed it to my place.

after a quick wax to get rid of some of that nasty oxidization
I started it up and drove it around a bit more when I got home and noticed the coolant temp. starting to raise just a hair(turned it off right away). It puffed grey smoke out from under the hood and beneath the car, rather than out of the exhaust. What is wrong with this thing. I have been reading about a timing chain rubbing issue along with a few other things. What do I check for? Any help pointing me in the right direction would be awesome. I have already had offers for the truck as is, and If the head needs to be replaced, I would like to sell it rather than mess with finding another head.
-Joel
(I know finally is spelled wrong in the title, can't edit it)