befuttled on oil leak
 

Ok, my 560SEL has an oil leak around the oil filter houseing, that much I've determined, however their seems to be another leak on the passengers side head near the two middle exhaust ports.

What would cause oil seepage from around the exhaust manifold? The car is not burning oil and the heads were rebuild ~2,000 miles ago (so new head gasket etc as well)

Has anyone seen anything like this before? The leek seems to be 1qt ever 5-6 hundred miles and I can smell burning oil when I stop.

I'd suspect the valve cover seal. Clean the area thouroughly with brake cleaner (when cold) then go for a short drive. You should be able to find the origin. Could be that the valve cover was tightened too much, which can cut the seal or it could be the valve cover seal was reused (not recommended).

Valve cover seal was new with top end service I performed. I was beginning to suspect that too when I looked back in and saw its only about 3mm from valve cover gasket to the exhaust gaskets and the exhaust gasket would act as a dam hence the apparant "leak" at the exhaust manifolds with no oil sources I know of there. It also makes further sence since I saw oil collecting at the rear of the head back towards the tranny dipstick/filler tube.

Thanks for the input, I'll try what you suggested. Will probably remove the valve cover, clean and inspect mating surfaces etc at my next oil change which is soon.

Thanks!

befuttled on oil leak
 

Had the same issue on my 560sl, with the oil leak around the middle of the valve cover. Smelly and messy. Turned out to be a distorted valve cover, which couldn't be straightened enough. Soo, a new one - at Can$400, but I no longer have a leak. Check the cover with a straight edge as well.