Well this seems very odd to me so I figured I need some other input on it. My distributor seeps oil out of the cap on the bottom where the wires exit. It does not leak from the o-ring that seals it around the cam cap. What could be the cause of this?

 

There is also a seal between the distributor shaft and the distributor housing.

 

well then I am sure thats the one.... seems like a lot to disassemble just to change it though.