correct

 

You would usually see blow by, and oil in the exhaust, for the pressure would push it past the pistons first...usually. If your rings are sweet, and can hold the amount of pressure being caused on the down stroke if you will, then yah, your oils seal must have been the week link.

Just for an equation level here, by what your dip stick says... that meens you have 6-7 quarts of oil in your motor....
I beleive it should be 4 quarts, plus a half for the filter...don't quote me though.

 

how do i get the oil pan off? I have to remove a lot of things dont i? or just the starter and the downpipe?