Do you have a "stock" fuel pump ? It sounds like the fuel pump pressure is too high and forcing the float and needle valve assembly open.
Excess oil is gasoline washing into the crankcase. Drain what is in there and install fresh oil.
You need to verify that the float and needle are working properly. Rig up plastic pop bottle with a hose pushed through a hole in the cap. Disconnect and plug the hose from the fuel pump and hook up this temporary test fuel "tank". It must hang upside down above the carburetor to that it will gravity feed.
If the fuel drains out of the pop bottle within 5 to 10 minutes (engine off) the needle vale has failed.
If the fuel level remains constant for that time, the fuel pump is over pressure.
