Upon nave was off on reset and water heater was on but not running. Pressed reset on furnace and it started up. Checked oil flow and had good, clean oil flow. Checked the igniter and it had a good spark. Checked the nozzle and saw it was starting to drip. Replaced the nozzle and slightly adjusted the electrodes. Started and tested the furnace. Unit started with no issue. Performed combustion test. Unit is running at 7.2%o2 33ppm co Turned hot water on and the water heater started up. Checked oil flow and had good flow but had a small amount of air in the line. Checked the nozzle and found the nozzle had been dripping and was in worse condition than the nozzle on the furnace. Replaced the nozzle, wiped up oil residue from the blast tube and nozzle assembly. Cleaned carbon off of the end one and nozzle assembly. Started and tested the water heater and burned off the excess oil from the bad nozzle. Performed combustion and smoke tests. Unit is running at 5.7%o2 39ppm co 0 smoke