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Jay, My first thought would be did you overfill the crankcase with oil? If not, then it may be your crankcase breather is not operating properly. That hose provides pulse to operate the fuel pump and although it comes directly from the crankcase, there shouldn't be any oil in it. Also check to see if your dipstick is seated in its tube. That also has an effect on it as well.
 

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I would say the hose is cracked. With all the oil flying around in the engine, there is going to be some oil in the tube. It should be a closed system, like a dead end street. If oil is getting out, there must be a crack in the hose or in the fuel pump.
 
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