Looks like I'm getting oil in my water reservior. Better than water in the oil! Anyone seen this before? 92 turbo 740, can anyone give me a maybe as to where it is coming from short of a head gasket/cracked head/block? Thanks

Like porkface mentioned make sure it is not atf (red). If it is then there is a atf cooler line leak in the side partition of the radiator.
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Keith in Maine,1990 740GL Wagon 245k AW70L B230F Red Block 8 Valve Non-Turbo Rex/Regina Non-EGR R-12 A/C

Having just gone through the same thing with a blown head gasket, after the prob is solved and repaired, put a bottle of 'Shout' stain remover (supermarket) though the cooling system for half an hour, drain system(and block) and flush a couple of times. The advice is here somewhere...it removes all the oil residue from the system and more importantly, the hoses.

Cheers
Ian

it has happened in other cars with the type oil cooler on yours. the cooler at the oil filter can leak water to oil or vice-versa. drain the coolant, to remove the oil in there, bypass the cooler and cross you fingers. if you still get oil, then it's in the engine. if no, then get another cooler. and make sure it's oil and not atf. atf would mean a new rad and a trans. antifreeze and trans clutches don't get along. good luck, chuck.

In my experience the only way to get oil into the water system is when the engine is cold. Therefore a crack in the block or head or a slightly damaged gasket that seals as the engine warms up. Pull all the plugs and do a compression test. Then do a bleed down test. Also on that turbo, does it have a water jacket??

Another way is to put compressed air into the cylinder while the piston is TDC and watch for bubbles in the radiator.
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1965 Mustang A block 4 speed, 1969 Cougar Eliminator, 1990 Super-Charged Thunderbird and a car (740) that my wife can drive!!!