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I have a 1991 indy 400 that I rebuilt the engine in last year. I rebuilt everything including crank and pistons. It was running good until it seemed to loose some power. I noticed the wiring that goes to the gauge pod fell from the hood onto the exhaust and burnt a couple wires. Being it was the last ride of the season, I decided to leave it and fix it next year. I thought that maybe that was the cause of the power loss. I pulled it into the garage this year and fixed the wire and then started it up. When it started it was smoking badly. I noticed alot of oily residue where the exhaust hooks to the exhaust manifold. I removed the muffler and a bunch of fluid poured out of the muffler. I thought it was antifreeze because I could see some signs of sepage around the head gasket, but it wasn't green and seemed more like oil. I then removed the 2 small drain bolts in the bottom of the crank case and oil poured out of them. I then did a compression check and I got 120psi on each cylinder. I removed the head to check the pistons as I had to fix the head gasket leak anyways and the pistons and cylinder walls are fine. There didn't seem to be an excess of oil in the cylinders just the exhaust and crankcase. What could be causing this.
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