[Pampered-Z]

I agree with johnJZJZ to do a pressure test first. Another thing is to run the engine with the cap off and rev it and look for bubbles.

How much oil are you talking about. it is just a slight film floating on top? That does happen if the coolant is old, over time as the rubber in the hoses deteriorate and the coolant breaks down you can see these oils in the coolant.

It looks like we may finally be staying above freezing. Consider flushing the cooland system very thoroughly and running just water and see if the oil returns?

How many miles are on the engine? what is it's condition ( how hard do you drive it? ) If the motor is tired you should think about a total rebuild, adding hi-po parts will only add stress to older worn parts. Put in a free reving cam etc. will only lead to a lower end failure. Spun bearings are common. If you add a cam to a engine with a worn bottom end/ oil pump your olny going to hurt it quickly.

If you feel your bottom end is up to it, when you tear the motor down and your on a budget there are a few upgrades you can do.

Felpro .039 head gaskets will raise your compression .5

The hotcam kit is probably one of the best bang for your buck upgrades as you get the cam, valve springs and 1.6 rockers, Should yeild in the 325-345 HP with headers and tuning and will still pass emmissions.

Just understand that tearing into an LT1 motor does get exspenvise because you start also replacing worn parts. Got the Opti off, might as well replace it - $300, and the water pump - $100 - 200 ( upgrade ? good time to go electric pump ), Timing chain probably worn, More "Cha-ching" Unlike the old blocks, parts aint cheap on these motors!

I would say that if you have between 50-75K on the engine and it is in good shape, doing no Opti/W.P replacment parts and a cam install will run $600 - $1,000. If 75-100K - $1,000 - $1,300. Over that or if your hard on the car rebuild the whole thing.

I'm getting ready to do 2 LT1 cam installs and I'm creating the "parts list". One is a mild cam, other is more aggressive and will include a double roller timing chain and electric water pump. So if you decide you need to tear the engine down I can give you some good ideas on different mods and what they cost.

JB