hello ryan
set your idle with the vacuum advance hooked up. when you set your timing you unhook the vacuum advance.
you can set your idle with whatever you are comfortable with. it could be anywhere from 750-1200rpm.
oil level-start with what is recommended with the pan and add 1 or 2 qts. if the lines do not drain back into the crankcase when the motor is shut off you can measure off the dipstick. otherwise you'll have to use best educated guess.
ref the smoke-you are prob burning off residue. make sure the valve covers are not leaking.
good luck.