Small Engines (Lawn Mowers, etc.): Oil in Exhaust, carbeurator, exhaust port

Question
I recently attempted to repair a tecumseh H70 motor for a john deere snowblower.  I have thoroughly cleaned the carbeurator, changed the spark plug, used new gasoline, changed the oil, etc...  When trying to start for the first time I got the engine to cough and almost start a few times but never was able to get it to run.  I checked that I had spark and the plug was firing.  What I did notice was oil in the exhaust port of the engine and around the muffler.  Any suggestions?

Answer
Has the engine been turned over on it's side? That's the only way I can think of how oil could have gotten in the cylinder. Usually you can use starting fluid to prime it to start and let it burn it out. Just be sure the muffler is pointing away from anything you don't want oil on!

Keith