did you let it rest overnight? The wilton recipe that I use asks to let it rest for a few hours. Maybe you also need to knead it a bit to get everything mixed again. The warmth of your hands helps a great deal. Hope this helps.
If you have alot of grease and oil separating from the candy clay--you did it right 
Let it rest and you can knead it later. You will be suprised at the change. Also don't worry if all the oils don't get mixed back in. 
Yes, I did have that whole oily thing happen. I was a little worried about that.
The recipe was 14oz. of the candy melts, and 1/3 C light c. syrup.
It's beginning to look better. Am I right in assuming I can cover a cake with this, the same as I would with fondant? Just looking for some tastier alternatives. Doing some experimenting.
Thanks to all for the help! I'm looking to get a little more serious with the cake decorating, so I can eventually quit my current job. I am glad everyone's so helpful here. I'm sure I'll have plenty more questions!
I have seen a few cakes covered with it. I would think it would be harder to do. Let us know how you get along with it.
After you let it rest it will be very hard. Be sure to knead it in your hands to make it more pliable before using it. And WELCOME to CC!! 
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