I used an air powered cut off wheel and went arount the seal very carefully. It could be comming from the oil pump where it bolts to the bock, the oil passages between the pump and block are sealed by a gasket. It could be the gasket is leaking, but I think you would see that. You could check all the 10mm head bolts that hold the pump to the block. I just looked at my greenbook to refresh my memorie, and all that is there is the shoulder of the crank and the seal. I suppose it could be possible that the oil pump is leaking into that area due to wear and allow oil pressure to get behind the seal forcing oil out. One other thing to look for, is there a drain at the bottom of the housing behind the seal to allow oil to get back into the block? Seems like i remember there being something of that nature built in, though i may be thinking of a different engine. I would look at that closely as well and make sure its not plugged up.
Jason
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