M44 running rough, oil inside cyl2????

[RsKeyz]

So I recently picked up an incredibly clean '97 318ic a couple months back. Just over 98k miles now. Took it through DEQ about a month ago and was told it had a bad cam position sensor. But it was still running fine, so I ordered one. A couple days later was coming home from a friends place and it started missing, and died 3 times. Was able to get it home OK. So as soon as I get the sensor, I put it in thinking that would solve the problem. Started it up, it ran fine, got out on the freeway, and then it started missing again. Got it home. Parked it again. Ordered up a Peake code reader the other day (still waiting for it to arrive) but decided today to pull the sparkplugs and have a look.
There is, what appears to be, oil on the plug in cylinder 2. On both the plug connector, and on the end of the plug inside the cylinder! I'm hoping that maybe it's just thick dirty fuel that collected because that cylinder wasn't firing correctly, but that might be wishful thinking...
Anybody have any ideas