I have a CCR3650 too, bought it new last year and have some recent experience.
Firstly, I am looking at a bottle of Stihl mix and it says 2.6 oz per gal, so your mix is a little heavy on oil - this may explain the blue smoke and your hard starting. I found mine to start easy enough - once I figured out that I had the swicth in the off position. As to more blue smoke and lack of power, you may have your choke lever in the "ON" position - that too was a learning curve for me as the lever was not up on the handle like a mower and in my case, it was dark outside too!
Once I got the engine going, I let it warm-up a little and boy was I impressed with this snowthrower's ability to handle a load - full width and about 6-8 inches deep.
The CCR3650 is one very well designed machine. Don't give-up, let us know how you make out.
Oh, before forget, I also used Stihl oil, but won't this year. You need to use NMMA certified TCW3-certfied 2 cycle oil. This oil I believe is an ashless oil and (someone please correct me on this), the Stihl oil is a low ash oil. The difference as I understand it is that the low ash is need in higher performance 2 cycle engines and given the lower operating temperature of your Toro engine (nearly identical to the Lawnboy Duraforce engines), the ash is not required and would only serve to foul your spark plug over time. Is it a big deal, for the amount of hours I put on my snow blower, I doubt it - BUT, since I paid good $$$ for the thing, the next gallon of 2 cycle mix will be with Lawnboy 2 cycle oil, which I am to understand IS the TCW3 oil.
Good luck,
Bill