does anyone have any suggestions for what this is causing this problem......

on cold starts (though it is always warm where i live), i have been seeing a cloud of white smoke for 2 or 3, with an oil smell, seconds after start and also sometimes when sitting at a stoplight and getting a breeze from the back.

i recently had a non lexus repair shop replace the leaking valve cover gaskets and they said my 33k mile car has engine sludge, which the "cleaned off" in the area that was opened.

these guys are now saying that it is a problem with the valve stem seals.

something else i read hear mentioned something about engine breather tubes bringing in oil to burn,

or a bad head gasket(s), but i had compression checks on half the cylinders and they were good.

any thoughts on what i have here?

Check this problem on USA LOC, I'm sure this has been covered on there

the valve stem seals sounds like a correct diagnosis

Yup I agree with Rob, what happens is oil seeps past the seals when the engine is stopped into the combustion chambers and burns off when you start up giving the puff of smoke.

Lost count of the times ive changed valve stem seals on the old Ford CvH Engine

Black smoke = fuel
Blue smoke = oil
White smoke = water.

Sounds like your head gasket might have gone. That would explain the sludge as well.