Smoke from right Exhaust & low compression???

I have a 4.4 2002, and I had it serviced a month or so ago (main dealer).
When it was picked up the car started to stutter and began to smoke from the right exhaust.
I took it back to the dealer and he said he would look at it. Anyway to cut a very long story short he hasn't fixed it and it still smokes.
I took the car to my local garage who is a friend of mine and he diagnosed the problem straight away.
He said it was a misfire from the front bank? Without messing with it I took it back to the dealer and explained the problem.
A few days later he said it was sorted. On my journey home it clearly wasn't.
I then returned it back to my friend who removed the spark plug and found oil inside. He reckons its coming from an internal leak and not valve cover? When cranking the engine there is a fine mist of oil spurting out the plug hole, he done a compression test and he said it was 125psi which he says is low.
I am getting well pi**ed of with it at the mo as I have just paid £2.5k for a new gearbox.

I hope this job isn't gonna cost me a fortune!!
I hope someone can help me!!

Thanks in Advance

Mac.

did he do a comparison with the other cylinders and said it was low compression tests can be awkward if all cylinders are not done together and cranked for exactly the same amount of time ,did the engine start or not when testing ,125 psi isnt that bad if it was only cranked over a couple of times ,the misting you can see might be fuel and not oil lastly if it only started after service check plug and oil level first then check all breathers are clear
ian

cleaned out the oil breather and it is still leaking oil into bank 1 spark plug at the front.blowing smoke from right side, the plug had oil in the next day after we changed it. The compression test showed 150 and the plug next to it was 150 aswell, what else do you think it could be?

The breathers were checked and seemed ok?

Mac