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Oil dripping from the exhaust is very common on a two-stroke sled. When you start the sled, oil/gas goes into the crankcase and the oil attaches onto the bearings and crankcase walls. If the sled is run a few times over the summer without letting it get to operating temperature, more oil is introduced into the crankcase but doesn't leave. Then as SEG mentioned, moisture condenses. Then the sled starts, some of the moisture/oil mix makes it's way to the combustion chamber and because it doesn't burn very well, ends up going into the pipe. The pipe is cold, so the oil/water mix can also condense there, and end up pooling in the low spots of the pipe. Then the next time you start the sled, the exhaust forces some of the pooling oil/water mix out, leaving a mess to clean up.
When the sled gets to operating temp, the oil/moisture can't condense on the sides of the cylinder or the sides of the can, and the oil mess will stop.
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2007 RMK 700 155", 2008 RMK 600 155", 2006 RMK 600 144", 95 Prowler 550 2-up, 1990 Indy 650
RIP, destroyed by fire 1-22-2008 
04 RMK 800, 05 RMK 600, 02 RMK 800, 97 RMK 700
http://www.avalanche.org/accidents.php
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