today i degreased the motor after going through the forums for a couple hours and i have come to the conclusion that the oil is riding up from the front main seal and spraying on the distriutor making it look like the oil is coming from the half moon or the dist. o-ring but it is the front main crank seal going to tackle that tomorrow. vale cover bolts are nice and snug, when i took it off the valve cover was touching the head and the gasket was cracked in places. half moons had sealant on them the new kit said not to use any chemical adhesives but my buddy at the local nor-crawl shop said to put silicone on the lower side of the half moons.
thanks guys this forum is awsome, yotaperformer
Since you'll be that far into the teardown you'll be 5 or 6 bolts away from removing the oil pump. I would recommend replacing the oil pump O ring since it is more likely to leak than the seal. The oil pump O ring has to hold oil pump pressure whereas the front seal does not. They DO fail and leak miserably and they leak as you described. hope this helps. Enjoy leak free peace after your repair.