oil in distributer cap

If oil is inside the distributor car the internal seal in the distributor is bad and the distributor should be replaced. If oil leaks around the body of the distributor where it goes into the cylinder head the oil seal is about $2. Distributor replacement is easy. the distributor is keyed in a way that only allows it to go in one way but ignition timing needs to be set afterward following instructions to short out T1 E1 in the diagnostic socket when you are adjusting the timing.