It could be Curt, I replaced the crappy Keihin carb on my Harley with a new Mikuni on the weekend and I got a "burp" through the carb when I first fired it up that caused a whisp of blue smoke to mist out through my air filter.
If this continued for any more than a minute or so though, you have to assume that combusted fuel is working it's way back from the combustion chamber/s. For this to occur, an inlet valve might not be sealing, so a good place to start would be to check your valve clearances, they may be too tight.
I'm not a 500 guy, but I imagine checking if your top end is getting oil is similar to the mighty 750, just unscrew your valve clearance inspection caps and take a peek with the engine running, you should be able to see oil splashing about in there.
One other thing to think about, is smoke coming out of your carbs, or out of your cylinder head or crankcase breather? Cheers, Terry.