VW GOLF MK3 1.6 1996 AEE - HELP! M.O.T FAILURE- 3x THE MAX CO EMISSIONS - Mr Haribo

Any suggestions why my VW GOLF MK3 1.6 1996 AEE has failed its MOT so badly on emissions?
It had new plugs, air/fuel/oil filters, 11 months ago. And its only ever done 77,000 miles.

The reasons for failure are.
-Exhaust emits dense blue smoke during acceleration (but it isn't burning oil haven't had to top it up in months)
-Excessive Carbon Monoxide & Hydrocarbon content.

Fast idle test
CO= 0.479%
HC= 159ppm

Second Fast Idle Test
CO= 0.982%
HC= 352ppm

Please, Please Help. The guy at MOT center told me to scrap it, but i love this car.

Edited by Mr Haribo on 08/03/2011 at 22:34