Is the grease on the bottom of the cover just to help it slide over the rubber seal? I think I installed mine bottom first. Everything was clean and I did put sealant on the seal at the rear facing contact points.

The reason I thought it was the cam seal is because I think the oil may be coming from behind the distrubuter which means the cam seal. I will wipe it dry and take a look. Here's a photo of the installed cover.

Attached Thumbnails

 

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Michael LaFleur

'05 E320 CDI - 86,000 miles
'86 300SDL - 360,000 miles
'85 300SD - 150,000 miles (sold)
'89 190D - 120,000 miles (sold)
'85 300SD - 317,000 miles (sold)
'98 ML320 - 270,000 miles (sold)
'75 300D - 170,000 miles (sold)
'83 Harley Davidson FLTC (Broken again) :-(
'61 Plymouth Valiant - 60k mikes
2004 Papillon (Oliver)
2005 Tzitzu (Griffon)
2009 Welsh Corgi (Buba)