Foaming in Radiator

Drain and flush your system then refile and take it for a spin for a few miles and look at it again, Have you ever flushed and changed the cooling system in it before ? If it has been setting you could be seeing rust and your system is know flowing every where, If you have water in your oil it will look brown.
My 318 Dakota truck looked the same way when I got it and I flushed the system with a radiator flush "read instruction" I watched some one do this and wasted his money :-D