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Oh yeah, I almost forgot - you can also leak oil from the cut-off line that runs to the ignition switch!
Check the fuel cut-off vacuum solenoid on the fuel system. If the diaphragm is torn there, oil can suck up into and then out of the ignition switch, which connects to the solenoid via a vacuum line.
It's gonna be one of those two things fo-sho!
If you are interested, my friend John converted both of those systems on his 300D into more reliable electric versions. I will be glad to ask him for the details of how he did it, should you find yourself wanting to eliminate the hazard altogether.
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-tp
1990 300SE "Corinne"- 145k daily driver - street modified differential - PARTING OUT OR SELLING SOON - PORTLAND OR. AREA - PM ME FOR DETAILS
1988 560SEL "Gunther"- 190K passes anything except a gas station
1997 S420 - 265k just bought it with a rebuilt trans. Lovely condition
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