I have an 88 sitting in my driveway with the same problem but on a different cylinder. Mine is burning oil because it was not well maintained. It will drive and run hard - but it can't pass emissions because it burns oil. Your issue may be related to the valve cover gasket or to the actual cylinder being worn and allowing oil into the area above it. (Blow By). At 200k miles this is a definate possibility if regular oil changes did not happen.

:Edit:

If you want to buy it - $300 bux and it's yours!