dipstick smoke

dont worry about it, the dipstick is red hot next to the headers and when you pull out the dipstick oil drips off the dipstick inside the tube and burns next to the headers thats where the smoke is coming from its just like dropping a drop of oil directly on the headers it should not hurt a thing i have seen this many times before. but make sure you have a good seal at the block where dipstick enters the block but i would try to insert it all the way and pull it off the header but your worst fear should be loosing oil at the dipstick hole in block if thats what your are talking about when you say," it isnt even in all the way, only about 85% in the way", or are you talking about the dipstick itself ?