I ran one quart over what's reccomended on a stock motor all the time. On my non-stock stroker motor, the minimum is 10 quarts, and it can hold 12 without foaming or problems.
So, run 6 quarts of oil in your 7MGTE all the time. Also run nice and thick oil. I run Rotella T Synthtic, and I belive it's either 10/40 or 5/40 and made for long running semi trucks that put 500,000 miles on each oil change, and run the engines for millions of miles between rebuilds. (Controling the water in the oil and filtration is key to doing this. Also regular testing of the oil, or you can just change this oil two times a year, and your fine as long as you use WIX, Purolator or NAPA filters. NO FRAM filters, they are crap paper, and don't filter very well at all.)
If you can swing the money, get a remote oil filter setup from Canton racing. (They use a non-bypassing depth filter v/s cheap disposable paper filters that don't stop particles that cause wear.) Canton also sells spin on adapters so you can use depth filters in a "spin" on type housing. Figure 130.00 for this setup and some filters, but it stops particles in your oil down to 8 microns where the paper filters stop stuff in the 20 to 40 micron range. Wear is caused by anything larger than 10 microns...