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Re: 1988 Silveradio 4x4 problem, and oil in exhaust
I'm not positive, but I think the '88 may have had a Dana transfer case. I'm not very well versed on those or their control schemes, but I'd be more concerned about the transfer case suffering damage than the ransmisison.
As for the oil on start-up, if there is liquid oil from the exhaust there is a serious problem. However, if there is bluish oil smoke in the exhauist on start-up, that is very likely due to hardeed and dried valve stem seals, and actually causes very little trouble with anything. If it really bothers you, you can pull the valve springs and change out the seals. If it doesn't consume any noticable amount of oil between changes, however, you can simply disregard it and let your engine enjoy the extra upper cylinder lubrication on start-ups.
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