What could result if didn't know for yrs inhalation of menthylatum ointment right inside nose was toxic? Did it with colds for yrs.

Myospherulosis. Myospherulosis - a granulomatous reaction containing saclike structures with spherules; associated with lipid medications being applied to open wounds or being injected. There are solid subcutaneous or dermal nodules (definition)... It is unlikely you have any issues if you don't have any "chronic sinus" issues. So if you don't have symptoms i wouldn't be concerned - otherwise see your local ent.
Pneumonia/mentholatu. While placing a small amount of mentholatum inside your nostrils will not cause long-term problems with your nose or nasal passages, it is not recommended. Mentholatum is petroleum-based, and if it gets into the lungs, can cause pneumonia or severe complications of pneumonia. Become familiar with the symptoms and treatment of pneumonia and/or worsening pneumonia. http://www.ehow.com/about_6546387_.