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Distributor leaking oil

My jeep seems to be leaking oil from where the distributor body meets the block. So, I picked up a dealer seal for it- really its just a round gasket that I guess goes between it and the block. I think its the "distributor mounting gasket". But, I also found a pool of oil inside the distributor, underneath the cam position sensor, not just leaking on the block. Although I know how to remove and replace the distributor, I don't know whats causing this. How is oil getting up there? Is it an internal seal of the shaft that failed, what needs done, is it just a seal or do I need a new/rebuilt distributor?

Thanks guys for your help.
1995 4.0 XJ SE, AX-15, D30/8.25 on 30s, waggy wheels
 
The symptom you are seeing is caused by blowby. It is pressurizing the block. Your breather tube that runs over to the air box is most likely plugged. Have you had problems with oil in the air box? A search should yield the process to fix it. A good search term might be "PCV"
 
The PCV valve-or CCV system on the Jeep- is working & I thought thought of that already (pulled the fittings serveral times) However, you made me realize something- the fitting in the intake manifold wasn't checked, diddn't think of that. I also, just now, pulled that rear fitting again (the bushing is new) and that metal shield underneath it looks squeaky clean right underneath- but I stuck my middle finger WAY down in there and pulled up a bunch of carbon, so this may be the problem.

My jeep is had the improved airbox where the fist (entry) hose connects after the filter, so no oil goes on the filter. It HAD an airbox, it now has an FIPK I built similar to a design posted in the "Modified" forum a while back(with weld on smog fittings included). It is leaking out the valve cover, needs replaced anyway at which time I'll clean everything up.
 
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