I think what we are seing here is caused by water mixed with the oil after being put away for a certain amount of time.if the engine has not been properly cleaned after water got in to it, once you add WD40 or any other oil base product you will get that effects, I've seen it happen to many times here with customers that drop off they R/C cars and truck for repairs.
Originally Posted by
Roelof
Looks like burned or dryed up oil to me.
Just clean it and look if there is realy rust on the crankshaft and bearings.