if its on the heat shield then it would have to be above where the block and head meet...it could be the oring on the distributer, mine is leaking there though its on a turbo so I don't have a distributer but should have a oring but its not spraying just dripping down.
The turbo really has nothing to with how the engine will handle that much power...it all depends on how much boost regardless of the turbo. Now different turbo's flow a lot different and will give more or less power for at a certain boost but thats not what you are asking. And I can't help you...
you sure its not the cam cover gaskets? On something this old and dirty I would think it could be hard to pin point it to between the head and block or anywhere for that matter.
It's much easier to pull the entire engine and trans together. I have done both and will never pull a tranny by its self ever again....in a MKII or MKIII supra.
There is no other option in my book
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