finnaly got 89 300e running to find that after about 10 sec the dip stick jumped up then 5 sec later a stream of oil came out of the valve cover vent? what the hell?

Your engine is filthy and broken.. I am guessing your filter failed.. maybe some returns are clogged. Has it been sitting..
Judging by your fuel problems.. it hasn't had the best maintenance and has probably been sitting. Your fuel is varnish and your oil is sludge i'd guess.

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1986 300e (runs like a top.. interior needs parts)
2006 GTO
2003 Mini S

i would say good call zero
im new to the deep workings to a mercedes or any car,
i can do it just never have
so is it fixable, or is it going to be a major tear down?

Yea.. well change your oil filter and oil.. if it still does it, you likely have a problem of sludge. Maybe do a bandaid with some "moto flush" or marvel mystery oil.
are you getting oil pressure?

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1986 300e (runs like a top.. interior needs parts)
2006 GTO
2003 Mini S

oil pressure goes right up when trying to start and stops around normal pressure