Re: 170 overheated and now is getting water in oil
Biggest recommendation for water in oil is head gasket, but the riser gasket on the elbow can be the #1 culprit. I suggest removing it, machining it, or sanding it down, re-installing the gasket, and while you are at it, do the same with your antifreeze reservoir. I've had this problem many times, and have always been told it's head gasket or cracked block -- gasket change is a cheaper start here than with head gasket replacement....
Exhaust manifolds are double jacketed - they contain water and exhaust fumes, and can backwash into engine on the intake stroke. Inner cooled engines have their own cooling system, but the exhaust is raw water, and that is why you can get water in your oil if the gasket has failed on the riser.