why is my airfilter ful of oil ?

i remember doing this on my car, I had to adjust my timing and adjust my carburetor. I adjusted the mechanical advance 35 degrees, and vacuum advance 15-20 degrees. Make sure the carb isn't running rich and the float is good. I also replaced my timing chain at this point, because it had a lot of slack, which contributed to other problems

Don't condemn the rings before checking this stuff, because it could just be running rich.