Where is the drop of oil landing on your garage floor? You'll probably want to remove your encapsulation panel underneath the engine bay to let the oil drip from where it's actually coming from. Watch out for oil accumulation on the inside of the panel - wouldn't want you to spill it all over your floor.

I know that the 320 engine is prone to headgasket leaks - but I'm not sure how common exterior leaks are vs. interior (into coolant).

Troy
1995 E420 75k

This thread should have been posted as a follow-up to "1995 E320 - pesky oil leak" and not started as a new thread.