RE: another darn ryobi post (ryobi performance modification, analysis and comparison)
If you don't have the exhaust tube at the bottom of the muffler it will catch the oil in the exaust.
You can also just have a small hole it the tube just above the bottom of the muffler to let the oil drain as the engine runs.
I just used a deep hole saw and drilled out the exhaust tube and cut through the guts of the muffler.
I drilled right next the the outlet tube. So I cut out the outlet tube and made the new larger hole at the same time.
This was done on a Ryobi muffler.