[Razorback1980]

Oil Cooler seals. If you have water in the oil, two things make that happen..blown head gasket and oil cooler seals. If there is oil in the coolant, then it's oil cooler seals. Now time to replace the rod and main bearings along with the oil cooler seals. I've been told by someone that is really knowledgeable on these cars that if the bearings don't set in the oil/water for a long time, then you may not have to change them...but the question I asked myself was if I was willing to risk bearing breakdown and cause a rod to start knocking maybe damaging the crank to save not changing the bearings? My car currently has the same problem and I'm electing to change the bearings along with all the seals I can get to while the engine is in the car. I know the oil isn't milky at the moment but if you drive it and heat it up and slosh the oil around, it will be milky. When it cools back down it will separate back out into water and oil and it won't necessarily be milky. This is a common problem with the oil cooler seals and once they are changed to the new design they are suppose to seal better. We'll see. Let me know if you get yours started before I do so I know what I'm in for. I'm going to order some new bearings and gaskets along with the oil cooler seals in the next few days and get started. Pulling the pan doesn't seem like that much fun, but we'll see...hopefully it is easier than it sounds.