An engine puking oil can often come from a hole in a piston like you said but you say this wasn"t the case when you got it opened up. Like other posts have stated fuel oil or hydraulic oil either leaking into and overfilling the crankcase can also cause an engine to puke. In this case you don"t say anything about the oil level being massivly overfull or anything so I"m assuming that"s not the problem either. Too a decompression lever being "engaged" won"t cause the problem.
With all that said the only other thing I know of that will cause an engine to "puke" is an excessive amount of blowby past the rings. This can happen from them being broke, glazed, or just plain worn out. The broken once and the razor thin worn out ones are easily spotted. But a set that has glazed over for some reason and just quit sealing aren"t gonna jump out at you like the others will.
Wish there was something a little more definate to give as a cause but given the information at hand and what you"ve observed so far, that"s about all I can think of.......Unfortunately there are sometimes just mysterious problems that have no good explination.
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