Water in oil?

I have a 1981 Toyota P/U with a 22r. The truck is totally stock, nothing other than what came with the truck from Japan. I am very habitaul about checking my vital fuilds. In the process of dayily driving I have noticed a light colored foam or froth on my oil dipstick, about four inches above the full line. It feels and smells like oil. The oil on the bottom part of the dipstick looks normal(clear, fresh smell). Could this foam be a little water in my oil? I have been losing coolant from hoses here and there. I have tried all most everything(execpt pay a pro) to seal this leak up. About four months ago I changed the water pump and termostat. The old pump had failed. Where could oil be leaking into the motor oil? Is there anyone who has dealt with this lately? 22R veterans?

I'm sure you meant "where can coolant be leaking into the motor oil". The most common point on a 22R is inside the aluminum timing chain cover right next to the chain. When the original chain guides break (especially the plastic types) the worn chain stretches enough to rub against the inside of the timing cover, and eventually wears a double groove through the aluminum right into a coolant passage.

I thought that 81 22R's had metal guides that resisted this type of wear, but there's a good chance that the head gasket and chain have been replaced already along with the new plastic type guides. They are quieter, but can break and cause this problem once the chain stretches too much. Or maybe I'm thinking of the 20R....

If you hear an arythmic rattle or chattering from aproximately the waterpump area with the engine idling, that means the chain/gears/guides/tensioner kit needs replacement, and now the cover needs replacement as well.

Toyota MDT in MO