ok, latest update: I pulled it down as far as the rockers on the left head. Pretty bad news. When I removed the valve cover, there was about an 1/8" of "chocolate shake-looking goo" on the inside of the valve cover. My first thought was that I've lost a head gasket. No.2 exhaust rocker is really loose. It appeared that the roller had come off the end of the rocker, but upon close inspection, the arms holding the roller had broken off, too, taking out the no.2 exhaust cam lobe. And, wait for it.... the roller must have gotten caught between another cam lobe and the cast top of the head, and punched about a 1/2" dia. hole into a water jacket, hence the water in the oil.
Warning: Don't be like me, If you hear a tick in the valve train, DO NOT keep driving the vehicle. This happened within a couple hundred miles. What would have cost $50 in parts to fix, will probably cost as much as $1K in parts to fix. And that's if the water in the oil hasn't destroyed the crank or rods.