I'm leaving this forum and have deleted all my work in this thread.

 

First the good news: That looks to me like a newer shaft. Just keep it topped up with good fresh grease all around.
The not so good news: That is some pretty thick sludge on your finger there. Do you know what kind of oil has been run? I personally might do a few short term oil change cycles and add a cleaner in towards the end. Maybe some Marvel Mystery Oil for a couple hundred miles at the end of a change or some Seafoam. You run the risk of some of the oil channels being blocked up if you have sludge like that. On the other hand, you also run the risk of breaking some chunks free that can then go and block channels while you clean it. Regardless, some type of engine cleaning I think might do you well!

 

Your front driveshaft has been rebuilt. Just grease it each oil change or 5000 miles, what ever your interval.

That sludge in your oil pan is harsh. Previous owner must have run 89 octain and sludged the engine. Just clean it up and maybe run transmission fluid in your next oil change. Let it idle for 30 min. Drain it and put your new oil in. Its old school and part of the 60k maintenance.

Looks like the front cover has a good leak in it. Not head gaskets. If you still have the oil pan off. I would replace that front cover gasket, replace it dry. That should help stop your leaks.

 

And while cover is off, check or replace oil pump and water pump. You can get a lot of that sludge out by pressure washing the pan, and use a cheap garden sprayer to wash down bottom innards of engine with solvent of choice, even WD 40, then spray with real oil before putting back together. Don't forget to put new O ring in oil pickup tube, clean the screen, etc.

May want to pull valve covers off and check oil galley drain toward the pan, they will be sludged up as well, may have to push a rod through them (like a rifle cleaning kit from WalMArt). Get all the big pieces you can.

 

No, I would not drive it with trans fluid in it! On this forum you are going to get some very strong opinions on using trans fluid for a flush. I would just buy some over the counter engine flush products from the local auto parts store and follow the directions on the label.

 

So back to the sludge, you need to flush that engine ASAP. I would recommend a good ATF flush followed by a Gunk flush before your next 2 oil changes or you are going to have problems.
If you have any questions, send me your number and I'll call you.

 

In the military we used kerosene to flush out diesel engines it works wonders, I have used it many time over the last 40 years.
Just use 2-3 oz. the day before you do an oil change it work just as good and any of the over the counter stuff I have used.
But just 2-3 oz. if you go pouring a quart in it will loosen everything at once and you will block the oil pump pickup, the idea is to dissolve it so that it will drain out with the oil or get pickup by the filter.

 

The major ingredient in many engine flush products is kerosene. And X2 on a little goes a long way. The idea of removing the big pieces you can see now, while pan is off, is intended to diminish possibility that chunks will break loose during flushing, which should also be done with multiple oil (AND filter) changes. As for the oil drains from the heads - anything with valve covers expects oil to be at some level inside the cover when operating, sprayed around by moving parts, etc. But it drains back to pan by gravity. Otherwise, how would pouring oil in the 710 fitting work (thats "OIL" upside down)? So with cover off, look for places low where it would drain, and make sure they are not obstructed. I pulled covers of a small block Chevy with 200K and they looked like a pile of cornflakes soaked in motor oil. Got it out, prodded down the drain holes to be sure they were clear, ran dino Rotella, and my oil leaks for valve seals went away.

 

grab a bottle of seafoam and dump it in the oil, drive it for a day or so then change the oil. i do a bottle every time the day before i change the oil.

 

ps. why do all your pictures show up as pdf's instead of just visible pics in the post?