Have you even seen deposits like that???

Drive the car for 30 min or so on the hwy and it all will disappear. It's caused by the engine not getting to operating temp for any length of time.

I'm going to assume you are not the one who overfilled the oil? You mention you had the car a week, so you just purchased it?

Keep a check on the level to ensure it does not increase again.. if it does, I'd bee concerned that coolant is getting into the oil.

It would take A LOT of very short trips in a row to accumulate that much ****.

On second look, are those droplets around the cap rim?

Yes, I purchased the car from a used car dealer. I think the car took about a year to sell so it must have taken a LOT of short trips.
I did not change the oil, they did. He told me that I could go for another 5K before doing the change. I think I'll do it much sooner than that.
Yellow deposits are all inside so nothing came out through the cap.

EFSiR said:

Yes, I purchased the car from a used car dealer. I think the car took about a year to sell so it must have taken a LOT of short trips.
I did not change the oil, they did. He told me that I could go for another 5K before doing the change. I think I'll do it much sooner than that.
Yellow deposits are all inside so nothing came out through the cap.

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It's perfectly normal in the winter time with short trips. Don't sweat it. Keep an eye on the oil. You don't want to have too little and you definitely do not want to have it "increasing" one you. Take longer drives and get the engine good and hot up to operating temps. You won't have this "problem" in the summer time.

It is normal in cold weather and short trips to have some emulsion residue on the cap, but this is huge clog down the pipe.
I would double the suspicion that 1/2l of coolant leaked down the oil pan.
Check the coolant for oil residue and level? If that checks OK, take the car for 20 miles spirited ride and see if the stuff will evaporate.

The dealer probably wasn't being honest when they told you the oil was changed a coupe of weeks ago. Yes, it is normal to have some of this on a car driven for a short while, many many times. Your case doesn't seem to fit, especially if the oil was just changed. I'd take it back to the selling dealer and make a strong case - basically, no matter what they say, ask them to change the oil. Then have an independent mechanic check to make sure coolant isn't sipping there also. I have the feeling you got taken.

EFSiR said:

Yes, I purchased the car from a used car dealer. I think the car took about a year to sell so it must have taken a LOT of short trips.
I did not change the oil, they did. He told me that I could go for another 5K before doing the change. I think I'll do it much sooner than that.
Yellow deposits are all inside so nothing came out through the cap.

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Darkmann said:

The dealer probably wasn't being honest when they told you the oil was changed a coupe of weeks ago. Yes, it is normal to have some of this on a car driven for a short while, many many times. Your case doesn't seem to fit, especially if the oil was just changed. I'd take it back to the selling dealer and make a strong case - basically, no matter what they say, ask them to change the oil. Then have an independent mechanic check to make sure coolant isn't sipping there also. I have the feeling you got taken.

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Then this means that the oil was changed ~5k miles ago or probably never changed and only reset the FSS.

Cancer_Researcher said:

Then this means that the oil was changed ~5k miles ago or probably never changed and only reset the FSS.

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I lean towards the never changed part. Simply because the seller said so doesn't mean it was done. I would also chastise the buyer here - it is basically gospel that when buying a used car the first thing to do is pull the dipstick out. Next, inspect the oil cap, then the suspension,..., but in the end, have a reputable shop give you the final OK. When buying a used Benz, the #1 thing to do is come talk with people on forums like this one. The seller is a business - they are there to make money, so it is on the buyer to make sure they don't get taken.

my feeling is that the oil has not been changed for over a year. With my short trips (less than 15km) moisture accumulates as the oil is old and fully saturated with water.
The battery appears to have an accident as there are white acid deposits around the base. So that needs to be changed.
Coolant is clean, no white smoke is coming out of my pipe. I have not pressurized the coolant as I don't have the equipement but if there is oil, it would float to the top of the reservoir and I don't see that.
Thanks guys.

EFSiR said:

my feeling is that the oil has not been changed for over a year. With my short trips (less than 15km) moisture accumulates as the oil is old and fully saturated with water.
The battery appears to have an accident as there are white acid deposits around the base. So that needs to be changed.
Coolant is clean, no white smoke is coming out of my pipe. I have not pressurized the coolant as I don't have the equipement but if there is oil, it would float to the top of the reservoir and I don't see that.
Thanks guys.

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Yeah, just wipe it off, take a few spirited trips of about 30 minutes and check again. In any case, I would change the oil (or have the dealer do it. Just show this to them and maybe they'll shit in their pants and may be eager to do it for you). Make sure they use proper spec oil. THAT is VERY important! What does the FSS say about either a service A or B about when it is due or if it is past due?

That amount of white gunge coupled with an increase in the oil level would ring my alarm bells. If the level was over the limit when you picked it up the warning lights should have been on then.
The fact that water/coolant is entering the oil does not mean that oil would enter the coolant.
have you checked the dip stick? If the gunge is at the oil level section of the dipstick I would be worried.
Having said that if the car was idle for some time and/or the thermostat is jammed open it is possible to accumulate quite a bit of gunge.

There is no deposits on the dip stick. The thermostat housing appears to be original and never changed. Service B is not for another 12,000km. I'm not sure how to check when service A is due.

EFSiR said:

There is no deposits on the dip stick. The thermostat housing appears to be original and never changed. Service B is not for another 12,000km. I'm not sure how to check when service A is due.

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That may be a good sign as there should certainly be signs of head gasket leakage in the sump especially if it contributed to an increase in the oil level. You will know from the length of time it takes to heat up if the thermostat is jammed open; otherwise clean out the gunge with a lint free cloth and go for a decent drive and see what happens.

Don't worry about the amount of that ****. Once, mine was probable twice that amount! My car runs like a Swiss watch. In the winter time, if I have to go small distances, I'll just go out and start it and let it idle for a while to help the temp reach operating temps. THAT even is not really needed.

EFSiR said:

my feeling is that the oil has not been changed for over a year. With my short trips (less than 15km) moisture accumulates as the oil is old and fully saturated with water.
The battery appears to have an accident as there are white acid deposits around the base. So that needs to be changed.
Coolant is clean, no white smoke is coming out of my pipe. I have not pressurized the coolant as I don't have the equipement but if there is oil, it would float to the top of the reservoir and I don't see that.
Thanks guys.

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I am not so sure. You probably read the link Ronny posted and then concluded. The stuff you are showing for your car just seems excessive - meaning a ton of moisture that it is troubling (at least to me). I have a 01 E430 which my wife drove daily to work, less than 3 miles from the house, every day for almost 2-years and I didn't see anything close to what you are showing - of course, mine was bought new. Then in 2003, she switched to a Bimmer, used - same driving style and yes, I see the milky stuff, but not anywhere close to what you are showing. I still think that you should have a mechanic check the vehicle completely if you didn't do that prior to purchasing. If you did and you have any kind of warranty, use it. Otherwise, well...., your current position is fine.

that much condensation seems to be pretty normal for m112 in winter months, don't worry much about it and just drive the car.
even one week old oil can show that much condensation, so cannot come to conclusion when oil was changed. an oil analysis would give you a better idea of when it was changed, but might as well spent the money on a new oil change than on oil analysis.
you can always just remove the oil filter to see how the filter looks, that takes 20 seconds.