No water in the oil trying to run hot only moved 1/8 in toward hot

That is transmission fluid . Transmission cooler line's go into radiator .Oil in water would have a white or brownish color .

have your thermostat checked or remove it yourself car can run without it if it improves replace it with a new one these do sometimes get stuck ,if you do replace it always add antifreez to your water this also helps to keep your water and water jackets clean.

I would also try the PCV valve.

These are symptoms of the following
1-Blown Head Gasket
2-Cracked head
3-Cracked cylinder wall

it could be one or all three.
This is serious business, and should not be driven untill you know for sure.
Water in the oil will damage engine bearings if allowed to leak into the crankcase

a couple of questions 1)is oil milkie 2) is it running hot an pushing water out of overflow 3)how hot is it running

there are a few possibilities .. first a bad thermostat is likely if the hose attached there isnt getting hot ... if the thermostat has been changed recently then make sure its in the correct way .. the spring or thermal sensor goes toward the engine .. the flipper valve goes toward the radiator .. make sure its not blocked by the gasket .. another possibility is a bad water pump .. an internally collapsed radiator hose is also possible ... make sure the cooling fan is turning on and actually moving air when the radiator gets hot ... you dont need the fan while moving but while idling the radiator will overheat if its not working .. you also have to check the pressure cap .. if it doesn't built pressure then the coolant or water will boil before the fan turns on .. when the engine is hot the radiator hoses should be hard from the pressure .. ... your problem sounds most likely a bad thermostat ..

Check for a collasped hose
A frozen shut thermostat
a plugged up radiator or heater core

Sounds like you have an air pocket in the cooling system. Take the radiator cap off the radiator(not when engine is hot) and then start the car. As air moves through the lines you will see the antifreeze level go down. Let it run and pour coolant into the radiator until it stays full. then put on the radiator cap and fill the overflow tank to the right level and I hope that fixes your problem.

Good Luck

Try flipping the Thermostat over. Pointed end should point towards radiator (output side)

Good Day,

Sounds like the thermostat is working properly, the only other cause for the valve/lifter noise could be the oil pump is not pumping enough oil up to the top of the motor. I suggest doing an oil change(if you haven'y aleready), be sure to flush several quarts through, after sitting for 5 years I'm sure the old oil is pretty sludgy, this well help rule out this possibilty. As far as the water pump goes, It either works or doesn't typically when they are on there way out the will leak from the gaskets. A bad head gasket would cause white smoke form the exhaust as coolant get's into the oil and is burned off, so I don;t hink this is the problem.

Here's a start for you, hope this helps and good luck