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A good engine shouldn't burn more than a quart every 1000 mi. So, 400 mi. is kind of bad as far as engines go. Probably the oil is blowing by the rings and/or there is a seal leak somewhere. The oil has got to go somewhere whether it leaks out or burns in the combustion chamber.
Maybe you could try a high mileage oil that burns off less easily.
oil burn is NORMAL for a modern engine upto about 1 litre to 1000km.when it gets down to 1ltr to 300km then its time to rebuild the engine.....it used to be thought that an engine that did not use oil was healthy but that was in the days when engines lasted 70/80k before a rebuild.
Intake, combustion, exhaust system is supposed to be separate from lubrication system. You have a breakdown somewhere in that separation evidenced by gas smell in oil and oil coming through exhaust. Possibly head gasket or piston ring. Take it back to the folks who rebuilt it and ask them about it.
Add enough oil to get the stick reading back to the full line. Oil can't disappear...so either you are burning it or leaking . If you used more than two quarts in 400 miles, if it's burning it it definitely should be fouling plugs and smoking. If leaking, there has to be wet oil under the engine somewhere. Check everything over again to verify either condition.
valve seals will not cause this kind of oil consumption, a scocred cylinder wall or broken piston ring will, not sure on the head gasket, does it have a combustion gases present in the radiator surge tank or bubbles while running? if not the head gasket is probaly ok.