Petza914

Fuel gets into the oil by a cylinder or cylinders not firing and burning it. Looks to me like you've found the result, but not the cause. If you have that much fuel in your oil, drain and replace it immediately - fuel is a terrible lubricant - and then you need to determine the cause of the non-firing cylinder(s), which could be compression or electrical (coil, plugs, wires, cap, etc)

Alan 91 C2

The CIS cars get the ignition pulse thru the green wire from the pickup in the distributor. Actual signal for fuel pump originates in the electronic ign coil box on the pass side of the engine.

Dr.Digga

Finally we have replaced the ignition distributor as a whole. Apparently sparks were shorting from the distributor itself to the engine block, effectively weakening the spark so much that plugs hat weak spark.
Car pulls strong now and has a smooth idle. Any ideas on how to fix the old distributor to keep as a spare?

Still some faint blue smoke when starting up from cold and on fill acceleration. Lets see if that is still from the oil residue in the breather hoses and will clear up.

So to conclude:
Cleaned tank and every component of the fuel system.
Replaced the complete ignition system (expect ECU).
Car runs great now. The saga from barn find to engine replacement and delivery drive as hopefully now come a successful end. Now its time to drive and fix all the other stuff that needs fixing apart from the engine...
Thanks for helping out along the way!

WestInc

Very good work and nice to see it on the road!
But another thing obviously caught my eye..; those wide hips don't lie, have we got another Strosek driver here? More pictures please!