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On the '86, I have always had oil leak from the heads onto the exaust manifold. This creates a beautiful blue cloud everytime i start up. Since my engine has been running so poorly, some of my car buddies brought up that I should replace it. Could a head gasket be my problems? Should I repleace it?
More than likely leaky valve cover gaskets. If you have a blown head gasket you'll experience more than a little smoke-poor performance, coolant in oil, high temps. You can do a compression test-or, a leak down test, but you'll need a compressor for the leak down test.
Make sure and check if the oil is coming from the valve cover. If they need replacing bad enough they will leak pretty good. Not a hard job to do. Get back with us after you take a second look.
I am not sure where I am looking totally, but I am sure that when I look at my engine block, near the spark plugs everything is covered in a light oil film. If you move your finger across, you pick up alot. What do leaky valve covers do? Any engine problems created because of it?
As above - there's no oil being sealed up by the head gaskets (or if there is, you need to look at your rings). Valve Covers are more probable - do check the PCV hose and rubber grommet too - or the front or the rear of the intake manifold.