moskiter

I just bought a 1996 Lexus ES300 for $1000 and it runs good but there are two major problems. One is white smoke from the exhaust on cold start. Second is overheating. I have the original repair manual book and plenty of free time. What should I start with to diagnose the problem? This is the link to the video I made: http://www.youtube.com/watch?v=XDPPPVCeXsY

I know that white smoke indicates blown head gasket and burning coolant but the problem is that coolant tank is still full (even when I spilled some on the ground when opened the valve:/). Both hoses are hot as hell so thermostat also should be fine. And the smell... the smoke smells not like water... it smells like exhaust fumes or even worse. Or maybe I am a daltonist and the smoke isn't white...? And the engine overheats often but not always. The oil also is still at the same level...