What would make..

[catalyst.]

a 325e smell exactly like a two stroke and have extremely loud head noise?

I thought it was the HG at first cause there was so much smoke, but the oil looked reasonably clean and the crank case had no coolant in it. Also the coolant expansion tank looked like it had reasonably normal/clean coolant in it.

could it be bad timing? blow by?

[blunttech]

Tell Us More. Did This Pos Just Start Running Poorly Or Were You Out Running It At 6500 Rpm With 1/2 Quart Of Oil In It?

[catalyst.]

It had plenty of oil in it, it was actually idling after i ran it at 3k rpm's for 2 or 3 minutes, it just sounded really bad and idled very roughly.

The exhaust smelt exactly how a 2 stroke outboard exhaust does.