It seems like a reasonable assumption Pete. The oil has probably end up all over the block underneath the thermostat housing and all over the exhaust. The only bit you can't see beneath the housing is the push rod tube seals which are a weak point and as has been suggested before it could be coming from there.
From the picture is it fitted with a sports exhaust, as it looks different, It looks like MBG have fitted that because both down tubes appear to enter the exhaust box in the centre just below the distributor, so they have fitted it in attempt to keep all the wires from burning and the distributor from getting fried? I wouldn't attempt to clean it as it would mean some sort of spirit based cleaner to remove the oil and it could be dangerous refitting it to the exhaust.
When the oil first escaped from the block was it concentrated in one place i.e down the right side or left? If it had come out of the oil filler cap I would expect it to be all over the place. I suspect it is more likely to have come out of the dipstick hole if it was mostly over the right hand side. Did it continue to run ok when the oil first escaped or did the engine Konk out?
Tony
Thanks Tony,
Yes, the guys from Channel 5 fitted a (very loud) sports exhaust which was (ironically) sourced from MBG. Ch.5 didn't fit the heat protective material to the exhaust, but MBG did so when they got their hands on it to fix the initial engine problems. And yes, their logic was to protect the wires and distributor from the extra heat.
I was going to remove it and wash it with good old fashioned soapy water, but if it will burn off anyway I might just leave it and live with it until it does.
The engine was pretty much covered in oil from the top of the rocker cover down, but the highest concentration was certainly to the right of the engine and directly onto the exhaust (and the shelf to the right of it). Hence why the exhaust covering got a proper soaking. The dipstick theory is a good one, as the dipstick had definitely dislodged.
It did continue to run well, both during the initial test drive (with too much oil) and the second test drive (once I'd drained it and got the level right). No loss of power or performance, just a huge amount of smoke! So, this would again support the theory that the dipstick has blown out during the first drive, oil has gone everywhere, but no seals or gaskets blew. The second test drive was probably mechanically fine, but the oil burning off looked very dramatic and probably covered the engine bay in oil again.
I'm away over the weekend, so won't get a chance to drive it for a few days, but I'll take it for a few longer (and probably very smokey) drives early next week and get the oil burnt off the exhaust covering.
Fingers crossed that I've dodged a bullet on this one and it seemed a lot more serious at the time than it actually was! I'll keep everyone posted.