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lots of white smoke

Engine

Vehicle Information: Year: 2000; Engine (type, size, modifications): standard; Total Mileage: 49000;

I just purchased a 2000 S Boxster from a reputable dealer. No problems occured until 2 weeks after I purchased it. On a road trip I noticed a large plume of white smoke out the rear exhaust, when I accelerated on a straightaway at about 75 mph. Soon thereafter, the smoke got so thick I pulled over and had people staring at me and my car. I checked the oil level and it was down to 2 bars on the electronic readout. I called the dealer and he said it could be a failed oil separator. My choices were to drive home or have it towed. I purchased 2 quarts of oil, just in case, and headed for home. Not even a mile later, the white smoke was back, and so bad, I called it quits and called a tow truck. The check engine light came on as well. What are the possiblities? I did purchase a 3 year, 36,000 mile warranty through "Great Lakes" called the Titanium Advantage Plan, that wasn't cheap. Do you think I will be covered?Thank youGeorge

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