1997 Ski-doo formula 500. I just pulled it out from storage. While on the trailer, I washed it and the trailer down, tipped it up so the water could run off. I left it tipped overnight. Shortly after I set it back down, oil began to drip from underneath. Quite a bit dripped out, but eventually stopped. I put in new plugs, fresh gas and tried to start it. No luck. Pulled the plugs. They are covered in oil. I then noticed that the fuel pump (located below the engine) is leaking oil. It is coming out the top from what looks like a pressure release hole. The oil is not straight 2 cycle. It is creamier in color but definately the texture and smell of oil.

You can probably tell I don't know much about engines.
What happened? Whats wrong? Is it something I can fix easily?
It ran perfectly when I put it away in the spring.

Sounds like water and oil in the crankcase to me. Seems odd though.

That sounds really odd. I would also have to say that it sounds like water in the engine but there shouldn't be that much oil in there if it hasnt' been started in a while.

Its not water. I can't think of any way water could have gotton in there. Could it be anifreeze? The Oil does have a slight greenish tint to it.

could be water from condensation, it doesn't take much to turn oil milky, The oil possibly could have been built up in your pipe and dripped back into the engine when it was tilted back for so long. This would be my best guess, but I've never seen anything like this happen personally.