EJ25 Help.. I am Scared

[czsmola]

I have a 98 legacy outback with a 2.5, I had the standard blown head gasket problem, I took the engine apart, had the heads machined and cleaned reinstalled with new gasket, new bolts, and I also installed a new timing belt and Idlers .. I however did not see anything about using assembly grease until recently.. I am not sure how I missed this with all the stuff I read.
I set the timing, then cranked it by hand, checked it then checked it again, and so on a ton of times.

I was told to pull the cable on the coil pack and crank the engine until the oil light goes off. Then I reattached the distributor and tried to start the car, it Fired up but died right away, so I tried it again same thing.. oil light came back on so I pulled the plug again and cranked the engine, light went out so I reconnected the distributor and tried to start it.. however this time when I tried to start it, it still died but this time there was a puff of smoke coming from the passenger side of the engine. It smelled kind of like something electrical but not really sure it freaked me out. either way I am scared.. and not sure what to try next.. any advice ?
I have just not really seen anything on what steps to take when firing up an engine after a HG rebuild

[1996Battlewagon]

Vacuum leak? Check that diagram on the inside of the hood one more time.

[98legacygt22]

Check and make sure your coolant temperature sensors are plugged in. I had the same issue when just finishing a head gasket job on my 98 Legacy 2.5, car would fire up then shut off and that's what it was... and the stuff burning off is probably just residual antifreeze or oil that got onto the exhaust.