First of all Mirky...if you mean milky than its moisture in the oil, coolant-rain water something. Think of oil going in fresh...all golden and shiny. Look at your oil, does it resemble grey or white vs. new golden brown?

About the "its not the rings" diagnosis...you may be surprised. What was the wet compression results on #2? In comparison, how did #1,3 and #4 compare? I recently experienced an engine that ran fine but had a "noise" that was deafening that quickly went away. Compression check revealed 145,145, 145, 60. Wet test brought the low cylinder up to 100#. Diagnosis, ring land broke...if not the #2 compression ring itself. Only way to tell where its going is to do a leak down. Pump about 30 PSI into the cylinder and listen. If it comes out the exhuast-ex valve, if it comes out T-body-intake valve, if it comes out radiator...cracked head or failed head gasket. If it comes out the oil cap...Engines coming apart soon. The high pressure in your oil pan pushing the dipstick out is enough for me to decides which it'll be. Good luck on your diagnosis and repair. ~Darin <img border="0" alt="[Baby]" title="" src="graemlins/baby.gif" />
PS-will have an updated signature next week....