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Methinks your fuel pressure regulator - or something - is dumping way toooo much fuel into the system. Some is soaking past the rings and getting in the oil.
Remember though, it could run "nicely" when rich. Just pollutes like crazy.
So if your oil test says "fuel in oil" then I think you're still at the step of figuring out why it's running rich.
Hopefully there's no head gasket leak allowing coolant into the oil. Are you losing any coolant?? Or, if there's water in the oil, it still could be condensation from years of sitting around. I think maybe you haven't had a chance yet to run it enough to cook off all internal condensation.
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Sven: '89 245, IPD sways, electric rad. fan conversion, e-codes, 28+ mpg - auto tranny. 850 mi/week commute. '89 245 #2 (wifemobile). '90 244 (spare, runs).
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