About 3 weeks ago I replaced the water pump on my 95 7.3 PSD. I've never done that before, but with the help of alldatadiy.com and the proper tools it wasnt' hard. About 1 week ago I had to replace my cam position sensor (176,000m) and while diagnosing that problem I noticed that there was just a small amount of milky oil at the tip of the dipstick (after it was wiped) when I checked the oil. My coolant resivoir was empty, but from the outside it looked full, so I hadn't checked it since I refilled the coolant from the water pump change (the plastic for the resivoir is somewhat stained from coolant over the years). I filled the resevoir with 50/50 mix and drove for a few days to burp out any additional air. 2 or 3 days ago, I added about 1 gallon of 50/50 coolant and checked the oil dipstick, it hadn't gotten any worse and the oil level was the same (half way in the OK area). After driving around for a while, I checked the coolant level, it was ok. Today, I was hearing a bit of a squeel from the engine so I decided to track it down. While looking at and listening to the serpentine belt, I noticed steam coming out of the oil dipstick. I've never seen this before. I removed the oil fill cap on the valve cover and a lot of steam was coming out and the cap was covered in milky oil. I checked the dipstick and it had a lot more milky oil on it than ever before. I cleaned it and dipped it, this time it came back almost entirely white and was up to the full level. I checked my coolant resivoir and it is empty again.
Do you guys think this is a blown head gasket, injector o-ring problem, oil cooler problem, or something else?
In the 6 months that I've owned this truck I have replaced the vacuum pump, low vacuum indicator switch, cps, water pump, changed the oil, flushed the motor, installed an air intake system, and installed a 4-bank chip.