Could be a head gasket problem. That's what I thought with my 95 VW Caravelle and proceeded to take off the head and replace the gasket etc. But it wasn't. The oil cooler had developed a leak and was putting oil into the coolant.
I don't know if Disco 1s have an oil cooler, or whether there is another place where there might be cross contamination from the oil system to the coolant system.
If you think about it head gasket problems usually show the other way around - coolant in the oil. You get the mayo under the oil filler etc. But this is oil in the coolant. A different problem!
Willem


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