Engine 302 oil leak when running

I pulled the valve cover and took the radiator cap off to compare the fluids and they are both green, but visibly different shades of green. The fluid under the valve cover still feels and smells like oil and the fluid in the radiator still feels and smells like coolant which is weird but I guess this just means it didnt have enough time to completely mix during the couple minutes it was running today. On the bright side, I figured out part of the problem: the previous owner had put the wrong dipstick in it and that was why the oil level was reading wrong. I got the correct one and it now shows full with 5 quarts as it should so at least that part is solved. No idea why or how coolant is mixing with oil all of a sudden though.
 
I pulled the valve cover and took the radiator cap off to compare the fluids and they are both green, but visibly different shades of green. The fluid under the valve cover still feels and smells like oil and the fluid in the radiator still feels and smells like coolant which is weird but I guess this just means it didnt have enough time to completely mix during the couple minutes it was running today. On the bright side, I figured out part of the problem: the previous owner had put the wrong dipstick in it and that was why the oil level was reading wrong. I got the correct one and it now shows full with 5 quarts as it should so at least that part is solved. No idea why or how coolant is mixing with oil all of a sudden though.
For your sake, I hope they aren't mixing. You got something goofy going on somewhere. I'd say run it more and get it hotter to see if you find more coolant, but it seems you can't do that without damn near starting a fire. I'd keep after that oil leak and pretend the coolant thing isn't a thing right now. Once you get the oil buttoned up, then turn to the coolant issue if you are still finding it.
 
I talked to a friend about all this and he suggested that the coolant may have come from the intake manifold. Even though I drained the oil and coolant before replacing the gaskets, I didnt think to check the oil drain plug again before refilling the oil in case some coolant managed to get in there. Does that sound right?
 
A few thoughts
Been there, done that
3rd time is a charm they say
* Use a couple of bolts made into line up studs to aid in positioning the manifold on your way down
I use clear silicone, very seldom use black and use ultra only on rear axle coverplates (that stuff can take longer to cure)
Let it dry at least 4 hours, preferably overnight
Examine how much excess you had last time when disassembling it this time, and use just an adequate amount, (don't go crazy with it)
I have had to re him rear end pinions (8.8's mostly) several times to get them to stop howling
3rd and even 4th time is a charm
 
How many miles are on this old engine? Mine has 266k and I fix one leak, then another one pops up. I'm assuming that my PCV screen (5.0) is clogged.
No idea. The engine is from 1978 and was rebuilt in 2004. Im guessing a LOT of miles have been put on it over the years. According to the previous owner, just a few thousand miles since it was rebuilt but at this point I just dont believe that.
 
I was able to confirm the green color was the oil dye and not a coolant leak so that's good. It seems odd that the oil appears brown in a plastic milk jug but it immediately turns green when it touches cast iron. Dye does weird things I guess but it sure did look like coolant. I changed the oil to some cheap stuff temporarily and ran it for a few minutes so i could confirm no coolant getting in there as the color of the new oil did not change. Back to the main issue at hand: the leak is still dripping from the power steering control valve hoses and seems to be nowhere above it. This time i started it up and just felt around those hoses and the top of one hose was worn quite a bit. I removed it and there's definitely a hole there. Looks like it was installed in a way that allowed it to make contact with the pitman arm which rubbed a hole in it. I will replace the control valve hoses and see what happens. Of course this would mean it was power steering fluid and not engine oil leaking out (hence the previous owner's quart of PS fluid I found in the trunk). It wouldnt explain why it starts smoking so bad though since PS fluid isnt getting on the exhaust. I will post an update when i get the new hoses in.
 
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Double check the oil pressure sending unit
Those will stop leaking once you shut the engine down
Examine that sender with the engine running and rev it up some
The old mechanical fuel pump can also squirt oil out the little vent hole for the diaphragm
Check that while the engine is running too