had the same thing happening; you need to replace the oil breather box ~$50. if it is screwed fixing the flame trap will do nothing.

you are getting oil out of the filler cap because the breather box is not allowing the excess crankcase pressure to escape.

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__Stef -- 81 DL wagon B21A SU carb M46 314000km

Do what the other posters said

1) replace the oil filler gasket (75 cents at fcpgroton.com)
2) service your flame trap (kit at 2 or 3 dollasr also at FCPgroton)
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'89 244DL M47 162K miles

Do check and clean your flame trap, check the FAQ's for instructions/location. The oil filler cap gasket sounds like it's had it, I would replace it, it's only around a dollar.

Before you go to all that trouble take a look at the FLAMETRAP..This is the equal to the PCV on American cars.. It will lead to all kinds of oil leaks as it is responsible for the pressure in the engine.. Get a good manuel and look where yours is, around the intake area and its a bugger to get to sometimes.. There are a number of posts on the subject on this board,, just do a search on it..That would be the first thing I would look for and then if thats it, get new friends///:)And never use Bardahl unless you want to do an engine rebuild..The smoke you see between the motor and intake is more than likly the flametrap,,
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Max..1989 244 DL 5 Spd., Bilstein HD, Turbo Swaybars, Poly Bushings all round, Turbo Wheels, Black leather interior, Electric mirrors, LED dash and gauge lights.