Started the tear down process and found this....
So tonight I pulled the valve covers and the first thing I noticed was the oil inside the covers was milky. The second thing I discovered was #8 exhaust rockers was REALLY loose, there was at least 3/4 of play (up and down) between the pushrod and rocker and the adjuster nut was not loose!
The odd thing is that when I pulled the dip stick, the oil on it looked normal and was not milky like under the covers.
Why was the oil milky under the valve covers but not in the pan?
I'm going to assume that I had a coolant leak somewhere, which diluted the oil and wiped at least one cam lobe. I plan to tear into it further later on.
1982 GT 351w(.060),10.7:1 flat top pistons, ported & polished heads, 1.94/1.60 valves,stealth intake, 750 holley dp, Comp 274XE cam, C-4 tranny with 3700 stall converter, 8.8 rear, 4:10's, subframes,electric fan.
Tons of mods that are too much to list