Some excellent advice here guys, thanks.

To sum it up, so far the cause could be:

- improperly installed camshaft seal (didn't use correct tool or just poor installation)
- increased pressure from worn valves, etc. causing leak
- damaged/scratched camshaft allowing leak

My shop is quite meticulous and they pride themselves on their work. They've been around for over 20 years and they know Benzes. My tech in particular knows his W124s so I don't think the first option is the problem. If a special tool is required, he would have used it. Nonetheless, I'll follow up with them and ask about it.

I'll take things apart as soon as I can and inspect it all closely and see if I can narrow this down. I'd really like to avoid doing the head just now - I know that job is in the mail, but if I can put it off until spring it would help!

Would posting a digital pic of the area/camshaft seal help diagnose it?

Thanks again!

__________________
Chris
2007 E550 4Matic - 61,000 Km - Iridium Silver, black leather, Sport package, Premium 2 package
2007 GL450 4Matic - 62,000 Km - Obsidian Black Metallic, black leather, all options
1998 E430 - sold
1989 300E - 333,000 Km - sold
1977 280E - sold
1971 250 - retired

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