I'd leave it sit overnight, then open the drain plug on the oil pan. See if you get water coming out or at least milky oil. Also see if ti smells like fuel... Given that there's no turbo on the old Lanz, I doubt that's the problem.
If it's not a head gasket issue, it's probably a fuel issue. I suspect that it probably blew an injector tip off, perhaps because of water in the fuel.
If there's no water in the oil, put the pug back and start the engine. Open the injector ines one at a time and see which one doesn't cause a loss of RPM or make theengine stagger. The one that doesn't is the bad cylinder. At that point you can pull the injector and look at it. If nothign obvious, swap the injector with one of the others and see if the problem follows the injector or stays in the cylinder... That way you know if it's a cylinder/compression problem or an injector problem. I'm betting on an injector given you have no power, smoke and increased oil level.... IF it's not a head gasket/liner issue... but you should find that the coolant is down and you'll find it in the oil.
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Today's Featured Article - Upgrading an Oliver Super 55 Electrical System - by Dennis Hawkins. My old Oliver Super 55 has been just sitting and rusting for several years now. I really hate to see a good tractor being treated that way, but not being able to start it without a 30 minute point filing ritual every time contributed to its demise. If it would just start when I turn the key, then I would use it more often. In addition to a bad case of old age, most of the tractor's original electrical system was simply too unreliable to keep. The main focus of this page is to show how I upgr
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