I have a 1996 502 that had a little blow by on the pcv and noticed that it was milky. I then decided to check the oil in the pan and it looked to have a grayish look to it. So upon further investigation I looked to change the oil and noticed that there was this sludge all on the inside of the filler tube and inside the valve cover. Could this sludge be caused by condensation and leaking back down to the pan and causing alittle water in the oil??
Thanks for the help

If it is a stock engine, I would lean toward riser gaskets leaking as the cause.

Change the oil do a compression check if that shows nothing odd get the oil/power steering coolers pressure checked.

Phil

yes the motors are stock, except for the gil exhaust.
Who will or can pressure test the oil coolers?

I am assuming EFI ? I had a problem on 1993's that on # 8 bank the intake manifold and gasket had corroded to the point that it was dumping raw water into the crankcase. No external signs of a leak. By the time I found it the motor was trash. Pulled the intake on the other motor (twins)
and found that one corroding also but not to the point of the other motor. The Merc EFI manifold blocks off a cooling port on the back of the head.

Just my experience hopefully not your problem.

Keith

The water passage in the intakes also rot through, as to the coolers any radiator shop can check them for you.

Phil