VCG and consider doing vanos seals too.
Also, when the low oil light comes on, you shouldn't need to add more than a qt. and sometimes less than that.
The reading you get when you turn the car off and wait 5 mins. is about 1/2 qt. lower than what it will be in the a.m. when cool on level ground. It takes a while for the oil to drain down and some gets held up a bit. If the low light comes on again, just add the minimum you need to get the light off, then make final adjustment at home.
If you overfilled, which I think you did, that might have attenuated the burning you noticed. Your exhaust manifold heat shield will undoubtedly be covered with brown burnt oil...and if you run your finger under vc, you'll feel oil.
There are gaskets that come with the kit that cover the spark plug wells, and they're shot, thus why you're getting oil in there.
If you had oil in well and then removed spark plug, expect burning from the oil that dripped into the cylinder. I'm not sure how good that is if it was a substantial quantity, but sounds like you already started up the car already afterward? If not, see what you can do about getting that oil out of there...a tad won't hurt, but an oz. you'd probably have an issue with.
I'm so depressed. No one wants to come see me in NYC: Sat, Oct. 8, 6 p.m. at Greenwich Village Comedy Club.
Mangofy your E46!