Water in the oil. Is thast a head gasket, or possibly something else?
Yes. Probably a head gasket or cracked block/heads. That is not a good thing/ Don't drive it especially if your oil looks like a chocolate milk shake.
only other thing joe didn't say was warped head, but that is least likely. A cracked head is what I have. Not on my car. If I were you I would click joef's answer as best answer, and it's bad enough, like he said don't drive it or you may run in to more expense than you already have coming. You may or may not also have oil in radiator also, Just curious, what mileage? That 302 5.0L is probably the best engine Ford ever produced.
Thank you David! The 95 Town Cars actually came with the 4.6L which was known to have contaminated heads -- Just like the 5.4. Both of them had a tendency to have head problems including ejecting spark plugs (most common head problem with them), cracks, and warps -- The 5.4 is more likely to have head problems but the 4.6 does it too. The 4.6's coolant overpass on the intake manifold was made of plastic and it often warped -- Leaking coolant externally. That is a very common problem and was actually a Ford recall. I agree with you about the 5.0 -- What a great engine!
I stand corrected on the engine. My '92 had the 302, and you are quite welcome
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