I just bought a 94 Jeep Cherokee 4x4, 5 speed manual. It runs good, there is no smoke or strange sounds. The oil looks good, no foam or anything. There is oil in the radiator fluid though. It's brown and has droplets of oil. Am I looking at a blown head gasket or something else?

 

Maybe from a problem the previous owner had? Have you flushed the complete cooling system? If not then flush it and fill with water. Run it for a bit and see what you come up with.

 

X2 on doing a flush. Compression check should also be in order.

 

Yep, that's what my current attack plan is. I have no mechanical experience at all other than changing a tire or battery so this aught to be fun.

 

a lot of people don't realize that coolant breaks down and loses its ability , a flush kit from prestone is not expensive and can save your engine or heater core, this is a great time of year to do it, before you find out you have no heat because of a clogged core.

 

See my sig, #4.