Oil around valve cover

Hi,
I've got a 95 XJ sport with a rebuilt engine (2 years old, about 40,000 miles on it). Lately, especially when I turn the AC on, I smell oil, and the dipstick is 3/4 quart low. I checked today and it looks like oil is seeping from around the valve cover. Is this a huge deal to replace? It looks like cardboard is in there now. Thanks!
Matt

Before replacing why not see if the bolts are tight, not gorilla tight either , just tight, could be they never retightened them after they finished the rebuild and it has been thru a bunch of temp changes over time.

That is a big possibility. I replaced my VC gasket a few years ago and checked the bolts about 3 months after the R&R and found about 4 bolts that were loose enuff to turn by hand.

Mike

I'd start with retorquing the valve cover bolts - if they haven't been leaking long, that may do it. Clean the engine after you do this, and watch it for a couple days. If it holds, apply loctite 222 or 242 to the bolts ONE AT A TIME!

If that doesn't work, get a tube of Loctite #518 Gasket Eliminator and follow the directions - that stuff will seal pretty much anything...

5-90

Hey 5-90, is that loctite #518 a sealant similar to the permatex silicone sealants? Not in the same physical respects, but used for the same purpose. Ive never heard of the stuff before.

Mike

Yeah - it's relatively new (<3 years) but will seal pretty much anything if used right. I ran across it rebuilding a Massey/Fergusson engine that I couldn't get gaskets for anymore... Damn thing is STILL tight!

5-90