Have you looked under the oil cap and any place you can peek into the valve covers?
If it is sludged up top, good chance it's dirty down below too.
If it got that dirty in 20,000 miles something is wrong or he hasn't got the story straight. It would not have sludged up in 20,000 miles if the oil had not been changed since the new engine.
Any check engine codes? Running extremely rich, open thermostat, excess idling and short trips would have explained the very dirty oil. It would have also clogged the converters.
Chances are there was no new long block, and the oil has been neglected for a long time. I would leave the new oil in and watch it, change it again when it gets to looking dirty, see what happens.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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