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thanks for the info.
While I don't know if the milky result is water or gas mixed in the oil (reluctant to taste it) I am having the massive boat trailered and stored for repair to am authorized Dealer (cost is sizeable and apparently my problem) and remain frustrated that out of the thousands of newly purchased and expensive Yam's, I got the one where the technician missed the class on (pick one) casting tolerances, gasket insertion, torqueing etc.

Trying to make the best out of what everyone involved claims to be a 'very unusual' situation.

2004 BW conquest 305
twin 250 F Yamaha, 7 months old with 140 hrs (20 hr and 120 hrs services completed)