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Well your suspicions could be correct, and you're talking about a job you can do your self at little or no cost.
Your dip stick popping out indicates high internal pressure in the engine (not properly breathing). This can also cause leaking at the engine oil seals, like the front and rear main. It will also push oil out the filler cap onto the engine and thus you oil smell.
Good new though! It is more than likely just a clogged flame trap. You can buy one for a couple of dollars, or try cleaning it. It is the hard to get to because it is under the air intake manifold at the rear drivers side of the engine above the breather box (I assume you already know since you know where the breather box is).
It slips down onto the breather box hose and then has a large and small hose fitting. You want to be careful not to break off the small hose fitting. Pull off the two hoses on the circular flame trap (black plastic piece), and pull the round flame trap out our the breather box hose. If your adventurous and cheap, pull out the brass coil and clean in with gas or carb cleaner (or buy a new one). If you clean it, you'll then have to re-wind it and replace it. Before doing that though, take something like a finishing nail and clear out the small hose fitting and make sure that all is clear.
You can pull off the breather box and clean it out with gas or carb cleaner also, but I have never found much in mine to restrict engine breathing.
It's really a trival job once you get the flame trap out (the hard part). I have taken off the throttle body to make it easier.
Cheers
Gary
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