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blowing smoke compression 190 across the board 200 1992

I have a 92 240 with 180K on the clock. Till now she has bee the epitome of quiet dependability.
Car has ha a slight oil leak from parts unknown, for the three years I have owned the car.
Last Sunday she lost power, the oil light came on and she started blowing smoke (a full on smoke screen). I had her towed home and after we cooled off I compression tested it and it was 190 lbs across the board, held steady. The plugs were oil fouled, and the car had limited throttle response.
We suspected the oil separator and flame trap, and ordered the parts accordingly.along with a new set of plugs.
Put the parts on this after noon, and after letting the car run for ten minutes to burn off some of the residual oil , thee was no end to the oil smoke, and the throttle response was still sluggish, and the oil light comes on after a few minutes of running.
I am at the end of my personal knowledge base here. Anybody have any ideas,before I scrap it?






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