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1. Doesn't matter... if it's cold, you get a true reading of the oil level after it has cooled and settled in the pan, you shouldn't even need to clean the dipstick before reading it... if it's hot, you must clean the dipstick, and I would check and double check to make sure you get an accurate read. Oil will be draining back down from the heads.

2. Engine off, parked on a level surface.


If you are checking automatic transmission fluid, you want the engine warm and running, in Park.
 

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Make sure it sets at least five minutes before you check it. All of the oil has to run back down to the oilpan.

Mike
B)
 
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