Cam/Head Swap Disaster.......

An oil drip you can live with! Let's hope this all holds long term.

Did you just do flushes of the oiling system to get the water out? I ask as I am working on an Opel 1.9L right now that had coolant in the oil..... not as bad as yours though. We have done the alcohol and diesel washes (1 alcohol and 4 diesel washes while slowly turning the engine over by hand and running the oil pump with a drill for each wash). And fresh cheapo oil at this point prior to start up, also primed with a drill while turning over by hand.