Thanks lexis lexus for the reply. The oil is actually migrating to the bottom bolts of the exhaust manifold and very slowly dripping down onto the exhaust pipe as it bends under the engine. I can see the edges of the head gasket and they are very wet with oil. I will try to get a picture of it today. I already replaced the timing belt, pulleys, cam seals and water pump about 20k miles ago. Considering myself a part time mechanic (having a repair facility in the family but not in the same state I live)I felt very comfortable with the timing belt stuff but the cams and all the gears and alignment scare the heck out of me. I do have an Alldata account and have the paperback books but all the same. Thanks for all your answers. Not all what I wanted to hear but it helps in making a decision on what to do.