I disagree. I think it was the first failure of the head gasket he saw there.

A lot of times, when people say "Blue Smoke", really they're describing the whitish steam that comes out of the tailpipe when you've got coolant in your combustion chambers. In the right lighting conditions, that can look light light blue smoke.

Gearheads are usually pretty good about being able to tell the difference between coolant-leak steam and oil-leak smoke, but to most laymen, they look like the same thing and people just say "smoke".