Looks like I have some water in my oil on my 425 magnum it has not been sunk or in water at all. What can be causeing this and how would you test or check to rule out each one.

 

is it air cooled or radiator??
dip-stick tube sealed?

I had a constant rubbing on my lower portion of dipstick tubing which eventually wore thru and mud got in and destroyed the shaft bearings. very expensive lesson learned on motor mount replacements which would have prevented this.

 

water cooled

 

Water pump bearing?

 

You can have a whitish residue film show up on the dipstick or top part of the oil tank from moisture accumulation from the crank case vent and oil tank vent.This can happen over time.If the dipstick is really milky best to just pressurize the radiator to see if it holds 10psi with out any drop.If the pressure drops,could be seeping coolant from the head gasket or base gasket mixing in with the oil.