That seems ok. Is it possible you are over sensitive on the gas in oil smell? You are correct in being worried. It is worth getting an oil analysis they are only about 15-25 bucks. A Cat or large truck dealer should have them in stock or call Amsoil and they send them out daily. The bleed down could be an injector or bleedback into the fuel tank which is normal on an older XJ. Also i would not be suprised if you did another cyl test that #2 comes up, maybe the oil hadnt sealed totally.
Its like a fart in a windstorm
It smells good but thats about it
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