Smoking from intake manifold & water dripping from tailpipe

[irving3d]

So I replaced my valve stem seals, headgaskets and manifold gaskets along with other smaller gaskets and o-rings, i also did a new timing belt and silent shaft belt. But when i went to start it up I noticed smoke coming from the exhaust manifold and downpipe. I thought it was just oil that had spilt when i removed my head but after a while it got worse so i shut it off, Any ideas on why this could be happening? also i checked the tailpipe and although its not smoking a lot anymore, water is still dripping from it. I was told it might be residual water in the muffler from when it had a cracked HG and the only way to remove all this water would be to drill a hole in the muffler. Does this sound right?
Thanks guys.

[Fordubishi]

or drive it, the Cat and Muffler can get filled with coolant and will take a while to burn off. When the engine is cold you will always get some condensation in the exhaust until the engine reach's operating temp. Coolant take's forever to burn off as it sticks to all the inside of the pipes and doesn't evaporate like water does. Just make sure your oil pressure and water temp are staying constant and you shouldn't have any problem. "If" it is still smoking after a drive or 2 you "might" have oil leaking by the rings and you will need a bottom end rebuild.

[irving3d]

I tried driving it just now and although it idles fine it almost dies after i accelerate it then goes back to normal idling speed. Should i recheck my ignition timing or is this caused by something else?