I have a very bad oil leak on my '78 (has an '84 351W in it). You can see the oil dripping on the ground on the passenger side' near the front. The steering stabilizer (or whatever that is called). Wasn't sure if I should post my question here or in the small-block forum, but I noticed that the dipstick is very loose. At first I thought this might be the problem, except my dipstick is on the driver's side and near the back of the engine. Could this still be the cause ? Should the dipstick tube be attached to anything? Is there anything typical I should look for to identify the location of the leak? I did see oil on some of the oil pan bolt heads. I just had a cam swap and GT40 heads installed and it is definitely leaking much worse than when I brought it to the shop for the work to be done.

 

1. Yes if it looks like a shock absorber and is attached to your tie rod then yes its a "steering stabilizer".

2.Yes the dipstick outer tube should be connected to something tightly, like the oil pan, if its like a 351M. A small block d/s is held in with a o ring (I believe) and a threaded nut around the tube on the 351m.

3. When driving the vehicle and oil drips, it does not go forward, the wind will carry it to the rear.

If your steering stabilizer had oil on it, your front main seal could be leaking? Or the oil pan, or maybe the distributor o ring?

If its leaking worse than when you brought it in, I'd take it back to them. The shop should of NOT put out a vehicle with a leak. Unless they seen it when you brought it in and it was discussed and you said to not worry about it.

Wipe it all down and see if you can ID the leak, with it setting there idling.