Thanks for all of your help. When the bike is off and completely level the oil just barely reaches in between the lower and upper level lines. When the bike is on the oil level drops below the lower line and is almost completely non existent in the window.
This was post #25 - you have just confirmed that your oil level is PERFECT - between the 2 lines. it does not matter what your oil level is when the engine is running. the sight glass is only there for checking oil when your bike is off, and level. As klr_guy hinted, you need not be concerned with the oil level in the sight glass when the engine is running.
Thanks for all the responses, but I figured the smoke/oil issue out. Turns out when you remove the oil pan you need about 500 ml more oil than a regular oil change, which is why the white smoke was coming out of the exhaust.
In post #33, you say you were down 500ml? but in post #25 your oil was fine?!
And NO, being low by 500ml of oil , if true, will not cause white smoke to come out your exhaust.