So many great replies sharing a wealth of experience - I love this site.
The sludge was a little disconcerting, and I worry a bit about what's moving through the oil, but I also recognize that this is an old engine that sat for a long time (I don't know how long) since it last ran. The tan colored oil immediately screamed "water" to me, but I figured (hoped) it was merely condensation, and the few minutes of running since the oil change seems to confirm that, the oil is now so clean that it's difficult to read on the dipstick. Nonetheless, I'll still change the oil in very short order (I considered adding diesel too, Dusty, but figured a short-order oil change (slowly cleaning it up) would be more appropriate until I have a feel about how much sludge is really in there). I may very well just drop the oil pan, it looks so darn simple (i.e., accessible) on this engine. For now, though, it's so cool to see that old engine run, which I will let it do a few more times to see what happens to this clean oil, then change it at the first sign of a color change.
Y'all are making me feel a little better about not having a filter on the engine, but, still, it feels so friggin' odd.
Thanks,
Chuck