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Based upon another of Jake's posts, I think the smell he's referring to is the smell of the IMS bearing grease cooking and getting into the oil. A very distinct burnt grease smell, I'm guessing.
Fuel in the oil means absolutely nothing. You'll get fuel smell from the oil after a single start on a cold day, if the engine is immediately shut off. Not uncommon to find 3% of the oil's volume is actually fuel, unless the car was just driven for at least 20 minutes.
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