Ok, I'm amazed that no one caght this. You said OIL around the head gasket. If you had oil dripping from the head gasket (around the head and block), you wouldn't be able to run the car for more than a few seconds. The only fluid that's in contact with the outer edge of the block is coolant. Sounds like it's probably just the valve cover elaking. Oil is like a heat magnet. Whatever gets hot will draw the oil. Before jumping into a head gasket (not a big deal), might as well check it out further. Are you actually losing oil? Obviously, since you said you can see it, but I mean at a rate that is noticable from the dipstick?
That aside, a headgasket is a weekend project for a first timer. I do em in about an hour now...

 

bakeoff- thanks for catching that. i'm not loosing much - but i'm sure it's oil leaking and it's leaking from b/w the valve cover and what i thought was the head but i don't know too much about engines. all i know is that it's leaking there and i know it's oil and it drips onto the exhaust manifold and burns up and smells really bad. anymore advice on where to start this would help....thanks a lot.

 

if it's right where the valve cover meets the head, just pop off the vavle cover, and clean teh gasket. A lot of times it will just be a little grit on it that isn't letting it seal. Might need to replace it. Just get one from checker. OEM is pricey as hell in comparison. Biggest thing I can say is, wait til the engine has gotten to cool off for a while before doing it. I've seen one of my friends break 3 vavle cover bolts trying to take them off a hot engine.

 

if u need i can scan the pages out of my Service manual. If u need them PM me

 

i've got a hanes manual that seems to have decent instructions. i figured it wouldn't be too difficult to just change the gasket. i wouldn't get an OEM one anyways, i hardly every buy OEM because my cars older and falling apart (maybe that's why! LOL) if i attempt this anytime soon, i'll let you know how it goes. thanks for everyone's advice, opinions, warnings, etc.

 

oh yeah, one more question about the valve cover bolts - can i use them over or is that impossible to do? if i can get away with using the stock ones again i'd like to. if not, can i just get a cheaper bolt from an auto parts store or something?

 

I took off my valve cover twice and reused the bolts. Just make sure you dont torque it down too much cuz they'll break.

 

I've had mine off for various valve adjustments, polishing the valve cover, replacing the timing belt, etc, etc, etc, and always used the same bolts. Until they break, use em.

 

great - reusing the bolts is what i wanted to hear! - thanks again everyone!

 

If you ever do replace the head gasket for any reason, do NOT reuse the old bolts. If you can't afford to replace them, I hope you can afford a new engine if one of the old bolts ever decides to let go.

That aside, you might want to take a little more time learning the car if you are confusing the valve cover gasket with the head gasket. A cover gasket takes 5 minutes if you go slow. A head gasket takes about an hour and a half if it cooperates.