I agree that it sounds like a stuck intake valve in #7.  Pull the valve cover and check that rocker arm.  roll the motor over by hand and check the operation of rocker arm assembly, and if the intake and exhaust valves on # 7 function properly. 

By the way, the guy up top got it before I did.

Jack

[QUOTE=Adams' Apple]Jim, are you sure it's oil in the pipes? [/QUOTE]

OK Joel...your question is in the present tense.  Since the problem has been found and corrected, I will say this....everyone that looked at it said it was oil.

cracked head on #7?

have also already made the "mistake" , thinking it was oil when water cleans a fouled exhaust.But ofcourse that drys up with only some carbon dust left , oil doesn't. 

Ok guys, it appears that Jackmoore was the first nongold or lifetime member to answer correctly.

The  problem was a broken rocker arm stud. What appeared to be oil all over the back of the car and in the exhaust was actually raw gas mixed with carbon.

You can't imagine what a relief it was to hear that it was only a rocker arm stud. Cost of repair...stud $3.40...labor $75.

Thanks to all who responded. Has anyone else ever had the same problem, other than Norbert and myself? 

I am delighted.  Both with the outcome, and with the membership!

Way cool.

Jack