Check inside your oil filler cap for condensation
, then check the dipstick and its tube for condensation
and/or greyish foamy oil. Either one would indicate raw water
in the crankcase. The grey oil at the air intake probably indicates raw water
in a combustion chamber and all these could be caused by a blown head gasket. If you have water
in the crankcase or cylinders it should be removed as soon as possible to prevent rusting where it is least desirable. Before replacing the head gasket check the cylinder deck
and liners for cracks and the head for cracks and warping. Remember to remove the water pump rotor and make certain it is intact, if it isn't the missing vanes are probably in the outlet port of the pump and must be removed to allow water through again. Good luck, I hope its a simple fix. Please keep us posted on your progress.