97 F150 4.2. Oil in the coolant. Oil in pan looks good. what's up?

 

#1 most likely: Leaking lower intake manifold gasket.
(also possible leaking timing chain cover gasket.)

Tons of info here in the 4.2 forum.
Use search and you can find all you need to know.
Here's one to get you started...
https://www.ford-trucks.com/forums/3...hydrolock.html

edit to add: It goes without saying there are other possible causes. The LIM and Timing chain cover gasket are IMO, the most likely as they are know to be common failures on the early 4.2 motors.
Also, it is common for the coolant level to slowly drop if the LIM gasket is leaking, so keep a watch on that.

A used oil analysis would tell you for sure if you have any coolant in the oil.

Keep us posted and let us know what you find.
Thanks.