The first thing you need to do is determine where the leak is. A little sludge on the stick is not a concern, but if the oil is milky then there is a problem. It will take a pressure test to determine if and hopefully where the leak is. Could just be an intake gasket leak, which is no biggie. Edit: pull the drain plug and see if water comes out. (Message edited by peter_c on September 11, 2007)
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