Did you check the valve lash? I don't think that was mentioned - and should definitely be tried first.
The valves may not be able to close.
As for the oil - I'd still suspect a head gasket - but it's possible when towing it it's drawing oil in around the valve stems and blowing that out the valves that aren't able to close.
Vacuum is a lot stronger at lower rpms - though - if valves aren't closed should be very low...
Either way - nothing should be blowing out the carb - fix that first and see what happens.
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Today's Featured Article - Identifying Tractor Noises - by Curtis Von Fange. Listening To Your Tractor : Part 3 - In this series we are continuing to learn the fine art of listening to our tractor in hopes of keeping it running longer. One particularly important facet is to hear and identify the particular noises that our
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