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Intercooler hose blowing oil? 700

OK, I got my 87 745 for about the cost of it's registration. It has a nasty oil habit, burning/leaking like a grounded supertanker. I noticed the underside of the compressor side intercooler hose is wet underneath, the intercooler itself is dribbling a little from where the hose connects, and the top of the airbox is wet. Of course, the valve cover is covered with sludge as well as many other things. Naturally, because of the fan's action blowing oil here and there I can assume that I need to track leaks down from bow to stern. How much oil could be coming from the intercooler line, and why? Should I replace it with a new Volvo hose, or scavenge one. I have my own Volvo boneyard, in a sense, and can get what I need for next to nothing. What else does this oil being in the intercooler indicate?






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