To All:
The neck of the VW distributor is fitted with an O-ring. It fits in a groove about two-tenths of an inch wide located about three-quarters of an inch up from the bottom of the neck. A new O-ring usta be included in every overhaul gasket set but it could also be purchased individually, back in the days when.... whatever.
So why mention something that's found on every VW distributor?
Based on comments received in response to my post about the distributor's need for lubrication, it appears that some folks are running distributors that are missing their O-ring and they've confused its groove with an oil channel. (One guy swore he'd NEVER seen a distributor fitted with an O-ring... about three breaths after telling me what a great mechanic he was, how many engines he's built, etc. and so forth.)
Oiling groove goes up & down. O-ring groove groove goes roundy-round.
-Bob Hoover
PS -- You can't use just any O-ring. The O-ring for the VW distributor has an oval cross-section. And before you decide you can do without it, since you have been... like that 'unnecessary' thermostat or the air-dams that vanished from the underside of your heads nine overhauls ago, keep in mind that the distributor's O-ring not only serves to keep the oil in, it keeps contaminants out. -- rsh