Davi

Here is an over view of the situation.
To the right (in the first image) is the distributor upside down, unbolted from it's home.
Oil is leaking inbetween the distributor and engine.
Should there simply be a gasket inbetween the distributor and the engine to stop the oil leak?
Oil is sitting just inside, is that normal? (please see next image over)

mwkirchner

If you look closely on the shaft at the bottom of the distributor ... you will see a black o-ring on it. That is your problem. Replace that and your oil problems will disappear.

badassaccord

What he said is exactly right.