After redoing the head on my 95 960, I am left with a persistant oil leak which seems to be coming from the rear cam seal. This is really frustrating because the car runs really well now and is so close to being 'right'. The oil comes from around the bottom of the cam position sensor housing and then runs down the engine onto the exhaust and oil pan.

Here's what I've done so far and my thoughts. I've replaced the cam seal three times. When I 'glued' the top section of the cam cover on, I had the seal in place- probably not a good idea, but this engine is a new experience for me after having owned red blocks for 25 years. Anyway, when I noticed the oil leak shortly after getting it running, I investigated and the seal was slightly cocked in the bore. So I took it out and replaced it. This time I pushed the seal as far into the bore as I could as the FAQ seems to suggest. Still leaks of course. After reading the green manual and looking at the old head, I realized that the seal doesn't need to go that far into the bore, because if it goes in that far it starts to crowd the oil return hole that is cast into the piece. So in goes seal # 3, but this time I was only going to push it in flush with the 'step' in the housing. Well, I got it ever so slightly cocked and didn't want to push it in any further. And it still leaks.

I'm not convinced that the slight misalignment of this seal would allow it to leak. My other idea is that I maybe didn't get enough of the 'goop' on that area of the cam cover and it is leaking at the seam near the seal and makes it appear that the seal is leaking. Maybe I'm overthinking it and just need to replace the seal again and be VERY careful to get it in just right-not too far in and straight. Thoughts or ideas from those with more experience with this engine?