Water in Oil Pan

Hi,

Obviously I have a major problem. A little back ground. Back in 2006, my tranny cooler somehow developed a leak inside the radiator. Ruined my transmission. At the time I just used an external cooler and had my tranny rebuilt.

Back at the end of 2008 I replaced the radiator and hooked up the lines for the oil and transmission. We put in a heavy duty radiator, a bit thicker than what was in it. From then to now I maybe put 2K miles on it.

Now, the Suburban has about 130K. I have oil in my radiator, and water in my oil pan. I never noted a loss of power or any problems except overheating, loss of coolant to the oil pan. We never noticed anything unusual about the performance or exhaust.

Today, I did a compression test, and the average was 160.

I am hoping that the oil cooler in the radiator developed a leak as the tranny did before. I rented a kit from autozone to test the radiator. We disconnected the oil lines and filled the radiator. Hooked it up and did a pressure test. It appeared there was a very slow but steady drip. At the same time I noticed that the water pump appeared to have a slight leak, but it had not had one before.

What would this be symptomatic of? Any help or suggestions would be appreciated.

---------- Post added at 11:16 PM ---------- Previous post was at 11:01 PM ----------

Also I might mention, when I took the plugs out, they had carbon on them. They were not really clean, they just looked used. They were not wet, but I did not run it before I took them out.
The engine is a 5.7 Vortec.
Oh, also, the dip stick is showing the pan way overfull.

---------- Post added at 11:18 PM ---------- Previous post was at 11:16 PM ----------

Again. I have not run the engine in a month, but the oil is thick and chocolately looking.