If you've got smoke out the oil filler, it's probably a stuck, or worse (and more likely), a broken ring. Does the smoke -chuf-chuf-chuf- out the filler hole?
First check for bad valves by doing a leakdown test.
If you have a compressor and don't have a twin gauge leakdown tester, get one, it'll be the best 75 bucks you spent on this problem. There are also many DIY plans on the internet for the Scottish folks. Nobody wants to tear apart an engine and then find out the low compression problem was just a piece of carbon under the exhaust valve, and could have been fixed with a few hammer taps on the butt of the offending valve. Used in different ways, a leakdown tester will also let you know if you have cylinder wall damage, the condition of the rings, bad intake or exhaust valves, or a blown head gasket. If there is a ton of leakdown, you can actually hear where the leak is in 95% of cases. I.e., hissing out the exhaust = exhaust valve trouble. Hissing in an adjacent cylinder, burbling in the radiator = head gasket. Hissing out the oil filler = broken or stuck rings, holed piston, etc.
If you are sure the valves are fine...
The budget way ($3.50 + about an hour of your time) to find out if the rings are either just stuck or busted on that particular piston, is to try the berryman test/fix. They're probably broken, but it's worth $3.50 to find out for sure.
Step 1, Buy a spray can of Berryman b12.
Step 2, DISCONNECT THE COIL POWER LEAD.
With the engine cold and car in the driveway (not the garage), pull the plug on the offending cylinder and squirt a quarter can or so of berryman b12 cleaner down the hole. Put the plug back in. Turn the engine slowly over BY HAND a few times. This will force the berryman into the ring grooves and around the rings. Pull the plug again and squirt in some more. Let it sit for a while (half hour or so).
Then, with the PLUG OUT and COIL POWER LEAD DISCONECTED, turn the engine over with the key. This will blow any remaining berryman out in a fine, extremely flammable cloud of fun. Now check the compression, if the ring is broken, your numbers will probably be a bit lower than before, bad luck, you'll have to, at the very least, pull that piston. If the ring was just crudded up, your numbers should be way up. Dance around wildly, have a beer in honor of your good fortune. Then change the oil.
Rick(wrench)