Well, I think I have been in denial. In January, I checked my oil and oil cap and noticed water droplets on the inside of the cap. I wiped it off and assumed it was from when I checked my oil after a car wash and I think a drop of water fell in from the hood. Anyways, I got a new batch of synthetic oil today and when I checked the cap after the oilchange, I noticed more moisture in it and a bit of gunk that looked a bit white. I had an Escort with a seriously blown head gasket that looked like it had milk for oil.
It has also seems to have a tiny tick when it downrevs, from 2500rpm and higher. Not sure if this is related. And I mean, it's a small tick.
The oil looked decent before the oil change. I haven't checked the radiator fluid yet for any oil residue. I check the oilcap all the time out of habit and I haven't seen any moisture or white sludge in the last month until after the oil change.
The LIM was replaced two years ago along with both valve covers. It's the 3.8SC with 48000 miles. The car is a 40th anniversary as well.