1700 miles? Did you buy this new? If so, I would think the warranty would cover this work.
If you're not getting a lot of oil but a lot of smoke, I'm betting it's either piston rings or head gasket. One thing you can do to narrow down the cylinder, is to remove the spark plugs. An oil fouled spark plug will be black in color and appear to be wet.
However, all of the above scenario's I gave you are all things that can only be checked through removing the cylinder head. The only one that's really an exception would be the hole in the top of the piston- if you find an oil fouled plug, rotate the engine by hand until that piston is at the top of the cylinder, you may be able to shine a flashlight in the spark plug bore to see if the piston is ruined.
Does your bike have an owners manual? If so, many owners manuals, particularly for bikes, include maintenance information. Yours may also include info on how to set valve clearances and what not which would require turning the engine manually and so the manual should explain the proper procedure for doing so.
Are you getting any accompanying noises?
As to the cost of a shop fix, if this isn't covered under warranty [and at 1700 miles I really don't see why it wouldn't be], that totally depends on the shop. I would, however, tell you to be prepared to spend in the range of $1500, more or less, parts and labor. This type of work involves removing the cylinder head, which basically means the whole top end has to be taken off, the repairs made, and then reassembled. A shop will use new gaskets and parts along the way.
If you end up paying a shop for this work, take the time to do the research and find a good one. Good shops are hard to find though, so if it means taking the bike to a shop 30 miles away that has a good reputation, it would probably be worth it.
Keep us updated.