I dont get much free time to work on this but i hope i am about done now. I allready junked the filter. There was no sludge anywhere in the motor that i could find. But i did find a busted valve stem seal so i replaced all of them, bolted in a new oil pump and plan on putting it in my 68 D100 this weekend.
It will be nice to have the extra power when pulling a trailer. The old 318 works pretty hard pulling it up hills.