Update:

I have prepped the car for a valve adjustment because thats what i can do right now. I got the feelers gauge from a local Autozone.

I took the valve cover off and timing belt cover off.
I took the distributor off as well.

I have a small problem...FIRST...there was oil on the inside of my distributor cap! I know this cant be good, what is the reason and the fix for this? I have a link below with all the pics i took of this car. You find the folder in there about the appropriate subject.

I have another problem....i think my head gasket is leaking NOT my vtec solenoid(possibly both but i doubt it). The reason is this. I called honda(cuz autozone nor advance auto parts carried this part)about the vtec solenoid seal. He first asked me if i was doin some kinda engine swap and i said "no, its leaking". He replied "hmm...i have never sold one of those, its rare that they do leak". So that is what conviced me to look further. You can see from another folder in the link below i took pictures of the leaky oil on the block. Not sure if u can tell from the pics but i see oil all below where the head mates with the block. Not above so it cant be the valve cover gasket. But this still doestn explain the oil in the distributor cap.

I'd appreciate any feedback, thank you!

Link: http://www.davidbauder.com/misc/car_pics

Just click the link and navigate through the folders of your choice. These are high res pictures so beware!