I'm back on the project. Does the value cover give any clue to what is going on?

 

Sounds like a cracked head. Just on the one side correct? Try pressure checking with some dye to see if can locate the crack.

 

If all I saw or knew about your motor was the pics of the valve cover and rockers I might think it's running too cool to drive off moisture. I couldn't see a PCV valve on your pic of the engine that would help keep the oil dry. Have you pressure tested your coolant system?


If it turns out you have no leaks then at the least, those poor rockers and valve covers need cleaned.


Edit: After a little thought, finding your leak is kinda academic at this point. That poor engine probably should be disassembled, cleaned, inspected, etc.