Background:

I hang at junkyards for grin and giggles and 1 month ago found 4 powerstroke engines in ambulances and bought all four. One engine was inside of an ambulance and had a head off that had lost a valve. Sucker went right through the piston. I slipped on tranny fluid carelessly left by some nerd and did a face-plant into the open valve cover of the engine. Hey, there is some sharpe stuff in there! Drove myself to the hospital where I received two nice scars right over the third eye. Dead center of my forehead. Took 30 stitches to sew me up and loss of alot of blood. I was so pissed I bought that engine as one of the four I mentioned earlier. I tore it down and have it on the rack ready to torture with a blow torch and some other implements of destruction! Well, after tearing it down I said to myself that this is one awesome engine. I decided to reprieve it and study the sucker. Bought the original Ford manuals, a bunch of Rotunda tools and decided find a truck with a bad motor since I had tons of parts. Anyway, found a 1999/2000 Econoline 13 passenger bus with 128K miles on it.

Question:

Went to fill the tire and found the oil dip stick hangin outside the tube that guides it into the pan. Since this is a cut-a-way bus using an Econoline F350 Superduty they lengthened the tube but used a larger tube at the front and leaving a gap where the two connect. The dealer told me that the engine was making terrible noises and I know why. I drained the oil to discover 7 quarts overfill. When you start it it makes ping noises and a pile of diesel fuel comes out the exhaust pipe. I also found oil in the radiator overfill but not much. I figured blown head gasket. Ford mechanic says that the oil in the radiator says breached oil cooler unit and the turbo is probably leaking the oil causing the tons of white oily smoke that happens when you start it. I took the turbo off. No oil in the intake side. Lots a oil on the exhaust side. Stuck my finger in the exhaust manifold and it came out soaking wet with burnt smelling diesel fuel or oil. Can't really tell. Initially it blew diesel fuel out in a hugh pool so figure its diesel maybe mixed with some oil or its picking up oil residue somewhere in the exhaust. I figure head gasket but a read somewhere about hydro-lock where injector cups get breached and it bends rods and all sorts of horrible things. Before I go on much further, anyone out there got any ideas before I go coo-coo and tear the head off and get into something I don't need to get into. I already bought the head gasket, new bolts for the exchange if need be. Just need a push in the right direction. Also, bought Rotunda 7.3 tool kit, compression gauges and Megahelic gauge setup for starters. Would appreciate any input. Thanks, JCx12