Farmall JD has a point I would like to know why it is high. The 666/686 used the D312 - smaller sister to the D-414/436/466 that could develope pinholes in the cylinder sleves. Don't think the D-282 had the problem as bad as the D-312.
The solution to the sleve problem was to add DCA4 to the coolant and a water filter on the D-414/436/466.
If the oil is milky at all take the tractor back as new sleves (engine overhaul) will cost you a few thousand in parts alone. Also, the sleve pinholes we're at the bottom of the sleves and don't effect engine performance. Yes the water will quickly kill the engine.
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