Fuming?
Huh?
Does your mechanic speak english?
Does he know how to read?
Does he have any other customers?
Rescue your Jeep while you still can!
I don't usually get frustrated reading posts because I figure it's your money, time an Jeep. But this guy seems to be barkin' up the wrong tree at $45 or more an hour. You're your own best mechanic, fix the darn Jeep! There are two styles of dipstick tubes for the 258 engine. The first style is the one that I assume you have... it's short and comes up about 9" or so. You have to reach quite a ways to get to it. The second type comes all the way up to above the top of the engine. It secures to the side of the head at the same point as the distributor and points foward. It's got one heck of a long dipstick! This is the one I prefere. The tube is awful pricey at the dealer, and no one makes an aftermarket replacement. So go to your friendly Junk yard and pick up a tube off a Pacer, Gremlin, Hornet, Rambler, or any other AMC car that had a 258 in it. The last one I replaced was $10 for the dipstick and tube.
For goodness sake don't let the mechanic put in an aftermarket GM 350 Chrome Diptstick tube assembly avalialbe everwhere for $11.95. That's just plain silly, and then try to calibrate it later... It may fit, but use the right part.
Now as to the diagnosis... What the heck is "fuming?" Fumes don't carry raw oil with them and spew all over the engine compartment. An engine does not normally spew oil out even the short dipstick tube. Has he checked the oil pump, the filte for a clogged bypass, the fuel pump for a pin hole, a leakdown or compression test? Something tells me he's missing an important fact.
In the 20 plus years I've owned a Jeep the only time I've had the dipstick tube puke oil was two times...
Once when the tube was rusted through with multiple pinholes.
Once when the passenger side motor mount broke and the engine was leaning to the passenger side.
You've got a potentially serious problem that the mechanic is attempting to mask with a new dipstick tube or changing of oil. We're I you, I'd be "Fuming" at the mechanic for a rational explination. IMHO He'd better open his garage doors a little while he's working and get some fresh air to breath.