Thanks for your comments. It seems this oil leak is a serious situation at times (like when it leaves puddles the size of a basketball on the driveway!) and at other times it won't leave anything at all. After taking off the little plastic MB cover on the front of the engine and removing the outer portion of the fan shroud, you could see wet oil on the front of the engine. Laying under the car with the hood up and the catch pan off, the foreward part of the engine is very wet. There are always little drips on, like I said before, the alternator casing and the air pump, etc. Also between the 1st two manifold outlets. However, the whole oil pan area is wet and shiny with clear oil. All the way back to the cross member is wet, and I think it even blows all the way back to the trans area. It always smells like burnt oil after a longer run. Looking up from underneath at the pass side of the block (Where apparently the leak runs down) you can see that except near the very front it is dry. You can even see the head gasket edges under the exhaust and nothing is leaking there. But like I said I thought that the T-cover leaked due to a faulty headgasket, and the only way to cure the problem was to replace the head gasket and reseal t-cover. I have called two places that service specifically MB and they say 99% time it is headgasket and not T-cover. They would check first, but could almost guarantee head is the problem.
Like I said, though, no coolant loss, etc, no overheat, runs perfect.

Anyway, I am picking up pan gasket which I ordered tommorow and may replace next weekend. Is it easy? Is this why the pan area is always wet?

Thanks A lot.

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2002 Mercedes-Benz E320 4Matic
1995 Mercedes-Benz E320 Wagon
2005 Land Rover LR3 V8 SE
1999 Audi A8 4.2L quattro