I had oil coming out from there too, but it turned out to be the oil cap seal on my oil filter. Oil is a funnny thing when it leaks cause it has a tendency to get everywhere and with the wind under the hood and etc.. it is hard to tell where it is coming from. I have a 96 SL320 and nearly every seal was replaced in it due to the overfill, including the rear main. The front main was easy compared to the rear but I got it done. I would remove the front cover and see if there is oil in there, does the converter have oil on it? Make absolutely sure it is coming from there, like I said, I have had oil end up here and it was coming from somewhere else.
Brian

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Brian W. Heitman

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