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CHAMPION R484P emitting smoke from the exhaust?

I have bought the above lawn mower about 3 years ago and used it without any problems. Now when I start it, it emits a lot of smoke from the exhaust and I also noticed oil droplets coming from the exhaust area. Any ideas where my problem is and how to fix it?
PACH, May 2011
Liquid oil in the muffler can only be because the engine has been tipped on it's side and the oil has settled there. Check the oil level, top up if necessary, then just let it run at full speed for 10 mins or so. Chances are it will clear.

phil_saunders(a)bigfoot.com

Phil Saunders, June 2011