the two plugs in question are removed to gain axcess to the very rear oil pan studs and nuts inside the bell housing, they can be a real pain to get back in while trans is attached to engine - oil above starter could be from intake gasket - valve cover gasket - oil pan gasket or even a leak in the oil pressure sender - iv'e even had the gasket under the dist shaft leak and trickle down there

 

Thanks, odat. A flat headed screw driver help to put those rubber plugs in. I was just out looking at the vehicle. The passenger rear part of the block is wet up to the manifold is the I could see and feel. The back two bolts holding the oil pan on above starter has the most oil accumulating on it. Lower intake gasket and valve cover gasket were replaced this year. None appear to be coming from the distributor. Where is the oil pressure sender?

 

right under and just a little behind the dist - also if you have the typical non metal valve covers make sure it hasn't cracked on you

 

No oil coming at all around distributor, couldn't find a crack on the valve cover. Although its hard to see in some places, I looked mainly where it is bolted on especially towards the back, and felt around and couldn't find any cracks.