Iltis smoke question.

[Pedro Bedard]

Hey guys, I thought I'd ask this here where others are far more knowlegeable about the Iltis than I am.

Here goes;
I finally got my Iltis on the road after 7 frustrating months of repairs and delays on Friday. Saturday, I decided to take it to a friend's place who lives about 20km away. Taking it on the highway, I got up to 70, she starts shuddering (what Iltis doesn't?) and then at 80 I get this massive loss of power, and a huge cloud of smoke behind me. I slow down and she seems to even out. Not one to press my luck, I take it home (I wasn't far) and parked it.
Opening the hood I noticed that there was a lot of oil all over the carb. I thought I blew a gasket or something but there was no oil on the engine.
On a hunch, I removed the air filter and found quite a quantity of oil in the botton next to the air hole that is connected to the carb by the snorkel.

One problem is that there is too much oil in it. I know this because when I got it home I check the oil level, and it looked empty! I now know that it was just see-through due to a complete oil change. But I made the mistake of putting more oil in it.
So, could it be that excess oil, being pushed through the rings via blow-by, accumulating in the snorkel and running downhill back towards the air filter? And when it get's to the higher RPM's, is slurps up some oil, giving me that problem?
I'll be draining some of the oil out tonight to the normal level but I'm wondering now if she needs new rings/rebore?

Thoughts? Comments?
Pedro
Winnipeg