Got my 560 out of winter storage and drove it to get the rear window replaced as planned. The same smell of oil came into the cabin and lifting the hood the smoke of burning oil on the exhaust was back. Got a halogen spotlight and using a mirror looked at the back of the passenger side head - sure enough - it was leaking from the valve cover gasket! The old gasket did it and so is the new one. Ticked off, I removed the valve cover again and wiped the back area clean and checked it - nothing. Cleaned the oil off the the sealing surface of the head and inspected with a bright light - nothing. As a last resort - when I reinstalled the valve cover I noticed that it had some wiggle room with bolts started but not tightened. I pushed the valve cover closer to the intake manifold and forward to get the gasket at the rear to sit higher up on the head sealing surface as far as the wiggle room on the valve cover bolt holes would allow - and tightened to specs. After the oil that ran down onto the exhaust from removing the valve cover burned off (about 1/2 hour) NO MORE DRIP!! I let the engine cool and started it again - it reached temp. and no more smoke! I guess the sealing surface on the back of the valve cover is very tight and if the valve cover is not installed with the slight extra grab by moving it upwards and forward the gasket will not have enough bite on the sealing surface and as the engine warms up - metal expands - and the drip started. Chalk another one up to stupidly simple when diagnosed. Thanks to all for your input! Hope this helps someone else if they get the same problem.
Next step - engine temp. Have to wait for it to get warm to check. at temps under 80F outside - gauge never climbs over 90C. While I'm waiting for the weather - I guess I will give her a good wash and polish coming out of storage:p :p :p