Well, it was still smoking after a full drain/refill. They are doing some tests to try and locate the source. I am looking forward to their findings and hope the engine isn't toasted. I'll update if i here anything.

 

Google results of why oil overfill causes such a catastrophic failure below. But I still have a question: why doesn't this seem to happen in other cars, like Lexus? Or it does and I just don't know about it? Is our 911 different somehow?

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http://answers.yahoo.com/question/in...8210602AAHxL40
Too much oil pressure in the motor - oil forces it's way past the seals and gaskets, damaging them permanently. Only way is to identify the damaged seal / gasket and replace. Can be expensive depending upon where it is.
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http://cars.cartalk.com/content/advice/oilchanges.html
A word of caution: Be careful not to overfill your car's crankcase with oil. If you put in too much oil, the engine's crankshaft can actually come in contact with the oil. And because the crankshaft is turning at several thousand revolutions per minute, it can quickly whip your oil into a froth — like the steamed milk that sits on the top of a cappuccino. Why is that bad? Well, the oil pump can't pump froth very well, and as a result, it can't get oil to the parts of the engine that need lubrication. The result ... a hefty boat payment to your mechanic.
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Or is it........................" Hefty boat of payment from your mechanic "

 

Hello. Does anybody know how much oil is left in a 997TTs oil tank when only the crankcase is drained?

 

I always "remind" my mechanic what the oil capacity is on the car. They are human and work on a lot of different models with different capacities. Over fills can happen and it can be a big hassle.