Oil pan leak

sounds like a head gasket issue, was the oil discoloured white in colour, bear in mind heat is caused by friction overheating will cause damage and possibly engine seizure.. which very expensive. unfortunatly a head gaket replacment is usually not cheap either as damage tothe metal also usually occurs when the gaket leaks.

Yes you can do it yourself.
Its not very easy,but with basic Auto repair tools the task can be easily completed.

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There are few help links with solutions to complete these task.
I suggest you to refer these links and view its procedure.

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Click the link below:----
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How to Replace an Oil Pan Gasket?
http://schematicsdiagram.blogspot.com/2011/07/how-to-replace-oil-pan-gasket.html
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KIA Sportage leaking oil from oil pan?

Go to Newly Launched

FREE Car repair guobyme.blogspot.com/2011/11/kia-sportage-leaking-oil-from-oil-pan.html" http://howtobyme.blogspot.com/2011/11/kia-sportage-leaking-oil-from-oil-pan.html
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Oil pan Gasket on 1998 Toyota Tercel?
http://howtobyme.blogspot.com/2011/11/oil-pan-gasket-on-1998-toyota-tercel.html
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VALVE COVER GASKET REMOVAL GUIDE http://technoanswers.blogspot.in/2012/06/valve-cover-gasket-removal-guide.html
--------- Car oil leaks from valve cover gasket? http://schematicsdiagram.blogspot.com/2011/12/car-oil-leaks-from-valve-cover-gasket.html

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How to replace Oil Pan on 2008 Honda Odyssey?

http://schematicsdiagram.blogspot.com/2011/12/how-to-replace-oil-pan-on-2008-honda.html

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How to replace Oil Pressure Sensor on 2008 Honda Odyssey?

http://schematicsdiagram.blogspot.com/2011/12/how-to-replace-oil-pressure-sensor-on.html

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2004 Chevrolet Express Van: Oil pressure sending unit replacing? http://whoisbyme.blogspot.in/2012/06/2004-chevrolet-express-van-oil-pressure.html
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HOW TO REPLACE AN OIL PUMP
http://schematicsdiagram.blogspot.com/2011/07/how-to-replace-oil-pump.html
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HOW TO CHANGE ENGINE OIL AND FILTER
http://schematicsdiagram.blogspot.com/2011/07/how-to-change-engine-oil-and-filter.html
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HOW TO REPLACE AN OIL PRESSURE SWITCH (SENSOR)
http://schematicsdiagram.blogspot.com/2011/07/how-to-replace-oil-pressure-switch.html

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How to Check Differential Oil Leaks and Replace Oil
http://schematicsdiagram.blogspot.com/2011/07/how-to-check-differential-oil-leaks-and.html
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HOW TO PERFORM A BASIC ENGINE TUNE UP-OIL CHANGE
http://schematicsdiagram.blogspot.com/2011/08/how-to-perform-basic-engine-tune-up-oil.html

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HOW TO RESET OIL CHANGE INDICATOR? http://whoisbyme.blogspot.in/2012/07/how-to-reset-oil-change-indicator.html

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These details will help.
Thanks.

If its leaking from the top end, you have a bad valve cover gasket.

you need a gaket

Sounds like a broken oil ring and your burning it. If so you can bet the converter is already shot.

Have a Cylinder Leak Down Test ,done ,to determine the engine,integrity. Also look at the exhaust gas emissions with an analyzer. Pull the spark plugs,that will tell you which cyl is oil fouled

There are two gaskets, one is between the lower pan and the upper pan, and the second is between the upper pan and the engine. You only need to replace the gasket that leaks. If both are leaking, replace them both. To find out where the leaks are, raise the car, get underneath, and look closely all around the oil pans to see where the oil is coming from. Use a flashlight if necessary. You should be able to trace any leaking oil upward to its source.

The oil pan gaskets are not necessarily the only sources of oil leaks. Check to see if any oil is coming from behind the timing cover, and look for oil coming from the valve cover gasket.

This is not an question that can answered in this forum...it's too involved and takes mechanical skills. I know these cars have always had oil leaks, and was a constant problem. Take it to a good tech for inspection or repair.

then you need to replace the gaskets drain oil from oil pan take all bolts out and drop the pan as far as valve pan covers buy rubber gaskets not cork they are a lot more pliable and less prone to leak

you probably need to replace the oil pan gasket, unless the oil pan itself is cracked then you will need to replace the oil pan

http://www.scribd.com/doc/6274603/jeep-cj-19491986-repair-manual