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Anybody ever experience having oil find its way up into the distributor?  I noticed a small pool of oil on the engine tin just below the distributor and can plainly see that it is coming out of the vent holes on the bottom of the distributor housing, not from the engine case hole that the distributor slides into.

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You likely have an internal oil seal on the distributor shaft that has failed.  If so, you will need to disassemble the distributor and replace the seal.  Depending on the type of distributor, there will probably be instructions/videos on line to help you with the project, although there are still a few that must be factory rebuilt.  If you've never done it before, you may want to take pics during each stage of disassembly. 

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