If your air filter is like mine (1968 220d), it is supposed to have oil in it. Is your air filter housing actually "filling up" with oil or just has some oil at the bottom? If it is truly filling up, that is too much oil to come from blowby, but probably means you have a busted vacuum pump diaphragm or a busted injection pump diaphragm.

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1968 220D, w115, /8, OM615, Automatic transmission.
My 1987 300TD wagon was sold and my 2003 W210 E320 wagon was totaled (sheds tear).

lot of information everyone... lol... thanks... I'll do most of these over the coming month or so... trying to get into a house so that takes precedence