Blue is usually oil, black unburnt gas, and white well let's just not go there. Sounds like she is burning some oil. There are two places it's most likely going to come from. Pistons rings or valves. With 130k it may just be time for a rebuild. Hone the cylinders, new pistons and rings. Have the valves cleaned up and ground down to remove the pits on the valves and seats have the guides replaced and she will be running like new. rbohm had a good suggestion. Have the carb rebuilt while all this is going on. Cost soley depends on whether you do it yourself or if you have someone else do it. Since your not adding any performance to the engine (Boring, 3angle valvejob, etc..) you could do all this work yourself. You would need a few special tools (engine stand, valve spring compressor, valve grinding kit) you might have to have a machine shop replace the valve guids but the rest of it is not to difficult. Just takes time. If you are looking to have someone else do it your best bet is to find a local shop you trust and get an estimate. You can probably have all the head work done for a couple of hundred. Since your not swapping anything out for higher performance parts it shouldn't be to bad. Honeing the cylinders shouldn't cost to much. Most of your cost will be labor for them to pull the engine and take it apart.
Hope that helps some.
