The smoke has a blue-ish tint to it but when I took the cap loose on the radiator (it wasnt warm at all) and burped the air out of it it seemed to go away.

I'm wondering if one of the heads has a hairline crack in it that opens up when it warms up. That would explain the large air bubble in the radiator, I have NOT added any coolant to it since I've got it, just checked it and it was okay level wise. It pumped out quite a bit of coolant with the cap off.