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If the blue is worse when you first start it it's probably the valve guide seals. These engines use the same little o rings as Chevy small blocks. Every one is usually hard and cracked. It's kind of a pain but you can change them with the heads on. Good job on the motors manual. Those are handy. Barry
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Yep, it is blue when first cranked and fades away fairly quickly while idling. When reving it up black appears.
I wasn't sure how handy that book would be, but it seems to have a lot of good info in there in the GMC section.