I have a 1990 3VZE 4 Runner, I have OIL in the WATER!
There us NO white Smoke out of tail pipe, NO water in Engine Oil, Dip stick clean, Oil cap Clean.
Runs great, decent power.
Automatic Trans (Cooler is currently Bypassed)(Not daily Driving it)
Oil Cooler (currently bypassed)
Flush system 20 + times
Still Oil in water, seems better though, but there.
Head gasket? Cracked Block?

 

Probably a cracked headgasket. Do a dye test on the radiator and see.

 

A dye test is a good idea, but won't necessarily help. Tech2123 has oil in the coolant. The dye test checks for combustion products (specifically, CO2) in the coolant. You can have one without the other; just depends on where the headgasket has failed.

 

Still possible for CO2 to be making it into the radiator. Even the smallest amount can cause the dye to react.

 

Sure, that's always possible. But if the test comes back "negative," what does that tell you? It certainly does not mean that the head gasket is okay.

 

Oil in the coolant is good for electrolytes. Send it.

 

Just an excuse to put a 5vz in it...but in all reality oil in water is never really a good thing. Sounds like head gasket to me as well, especially with the oil cooler bypassed.