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Are you sure thats where its coming from? Seen so many threads on this site for gen 1 leaks and almost always its the valve covers. Bolts are barely hand tight and a simple retorque seems to help most.
What do you mean about will it cause problems with the timing belt? Oil is petroleum based and that can break down rubber parts, like belts, but maybe clarify your question.
 

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Couple places it could be coming from if its showing at the front of the engine below the Timing Belt Cover.

1) Cam Seals (rare but possible)

2) Crank Seal (again rare but possible)

3) Oil Pump O-Ring (thats where my leak is coming)

Before doing my Timing Belt, I noticed this leak showing itself just below the Crank. Whilst doing the job myself, saw it was coming from just above the Oil Pump and determined its a slow leak around a .50c seal. Trouble is the engine needs removal to replace said .50c.

I did replace the Cam Seals and Crank Seal whilst in there just because its better while its all open and why not for such an extensive job as it takes maybe an hour for all 3.

In my case, the oil is leaking in and around what looks to be some purposefully built channels in the Timing Belt Area such that drips out at the Crank Area through a port. You should be good.

I’ve also done my VC Gaskets about 5 years ago and thats an easy job. That leak showed up on my headers and rear engine area. Some have the frontal leak, but the way thats designed will be channel back towards the headers. Report back!
 

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Are you sure thats where its coming from? Seen so many threads on this site for gen 1 leaks and almost always its the valve covers. Bolts are barely hand tight and a simple retorque seems to help most.
What do you mean about will it cause problems with the timing belt? Oil is petroleum based and that can break down rubber parts, like belts, but maybe clarify your question.
Just checked mine today and you were spot on. Only a few of them were tight. Some very minor oil weeping on mine, I bet it stops. Thanks Cheapskate (y)
 

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Glad you found your leak. Crazy how many guys find that problem with their gen 1's.
 
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