I installed a new distributor this morning and when I removed the old one I noticed a small stream of oil had been leaking from the head where the distributor housing slides into the head. The O-ring on the old distributor was flat so I guess it was leaking by that O-ring. Oil had somehow also found its way into the distributor housing. I looked in my manual and could only see a seal for the cam gear end of the camshaft/head so I am assuming that having oil in the small distributor bay (for lack of better word) in the head is OK and that the new O-ring will keep the oil from leaking externally. Am I correct? Or is having oil in the area were the distributer housing mates to the head a sign of a problem with the head/camshaft? And why the heck did oil leak into the distributor? Thanks for any help.
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