Hi Joe - The black is very serious, as it consists of aluminum chips floating in the oil. Wipe the oil off the wing, remove the muffler and run it on the ground for a bit. If the oil comes up clear, the problem was loose muffler bolts. If not, then pull the engine and remove the backplate. The rod can walk backward off the crankpin and scuff the backplate. If it does this, there will be a wierd triangle shape, resembling the rotor of a Wankel engine, cut into the backplate. The fix is to either install an anodized backplate, or take a facing cut on the old backplate to true the surface, and install a tinplate cover with JB weld. Either method will give a hard surface for the rod to bear on, and stop the scuffing. While its apart, rock the shaft over BDC to see if there is excessive rod wear. If so, replace the rod. If the play persists, look at the pin bosses in the piston to see how worn they are. Next rock the prop tips toward and away from the head, and estimate the crankshaft play. Any more than 1/16 is suspect, over 3/32 means the main bushing is shot, and its time for a new case. Let us know. Tom H.