Yes, so I think you are saying the fuel is washing the cylinder and not combusting (?) .... but would that mean oil goes past too? I dont know enough about whats happening in the suck, push, bang, blow process to know if there is an opportunity for oil to run into the pipe in that situation. comments?.
I'm not sure, really you should hang in for someone more knowledgeable but I'm thinking you were running pretty much on 3 cyl. So you may have been seeing something like any gas and oil in #3 getting blown out the exhaust unburnt, mixes with the carbon in the pipes then you see black oil like liquid come out the pipe.
Also have you been noticing any oil loss when checking the dipstick?
I think Fuzzie's got it here, plus all kinda crankcase gases and extra heat are gonna be created in this situation causing oil and smoke to puke out the vent tube onto the rear tire. Basically, you need to re-check all your engine clearances (piston, cylinder, valves, guides, seals, valve seats), fix anything wrong here and then the only thing left is that #$%*ed up spark plug thread...yeah, I have never seen this problem before.