Oil coming out from the PCV and Oil Level Gage...

[NoHachi]

He's losing oil by squirting it out of the crank case vents, not leaking past valves and puffing huge smoke clouds out of the exhaust.

Leaking head gasket is almost always identified by smoke clouds. Any leak between a cyl and oil chanel will result in that cyl sucking oil from the pressurised oil chanel during the inlet stroke (vacuum). Pressurising the crank case in this way is damn near impossible, you would have to overpower the oil pump pressure or blow all the oil passages clean. In fact, the oil would probably help with sealing the crankcase, reducing its pressure, not raising it.

My money is on the rings going bye bye..Only thing I can think of that will pressurise the crankcase. Luckily there is an easy way to check. Drop some oil into the suspect cyl through before connecting the cyl.pressure.meter. The oil will help the worn rings seal better and readings should be higher then without the oil.