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This is not a C5 only question, sorry. I would have put it in off topic, but I don't have pictures of women to go with it so I thought it would fit better here.
The dipstick in my daily beater has recently acquired a mixture of rust red, and white film along with the oil. What does this mean and should I do anything about it?
My dad's 83 Ford wagon had this for years and it continued to run, but I would like to know what it is.
Sounds like coolant. Probably a leaking head gasket. You can do a compression check on the cylinders and a leak-down test on the coolant system. What does the oil look like when it's drained out?
Any oil in the coolant? If you take the radiator cap off (when the engine is cool) you can look to see if you are getting bubbles in the coolant while the engine is idling. It very well could be a blown head gasket.
I does sound like you have moisture in the crankcase, but depending on the season of the year it may just be from condensation. What are your driving habits? Lots of short trips? If so you may not be getting the engine hot enough for a long enough period of time to boil off the contaminents.