A lot of oil can get past the valve stem seals, but I don't know if this particular engine has valve seals. On most engines, valve seals can be replaced without pulling the head. If it's not the valve seals, you probably have oil ring problems as others suggest.
Detergent oil normally looks "dirty" in most engines that have much time on them, and doesn't normally mean anything. Like Hugh suggests, I would put in some good detergent oil and change the filter, and then I'd run it good and hard. If that doesn't do the trick, I like the penetrating oil suggestion.
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