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Check all the vacuum lines and breather hoses to see if it's simply aspirating the oil through the intake. Could be some sort of PCV issue causing oil to get sucked in to the intake. Sounds more severe than that, but it is an easy check and should be looked at before you tear into the top of the motor.
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-tp
1990 300SE "Corinne"- 145k daily driver - street modified differential - PARTING OUT OR SELLING SOON - PORTLAND OR. AREA - PM ME FOR DETAILS
1988 560SEL "Gunther"- 190K passes anything except a gas station
1997 S420 - 265k just bought it with a rebuilt trans. Lovely condition
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