Oily coolant

My '89 trooper (2.6l) has a nasty case of oil in the coolant. It doesn't seem to have coolant in the oil (on dipstick anyway). If oil is getting into the cooling system, shouldn't the coolant get into the oil system?

My guess is the head gasket is shot. Funny thing is, the engine is running strong, there is no bubbling in the radiator, and the exhaust is not smoking at all. :confused:

I plan to tear into it myself this weekend. Any advise? What else should I look out for?

You have an oil cooler? If so the problem could lie there.