I found my oil leak. It was my alternator. :)

First off, I know that alternators don't leak, but read on.

I got an oil leak on my 328 shortly after I purchased it. I was coming from the firewall side of the engine, up near the cam seals. The belts needed changing so no big deal, I'll do cam seals and belts/tensioners at the same time.

After disassembly, I noticed that the valve cover gasket had expanded and "notched" the o-rings. Good deal, I found the leak. After reassembly, boom, smoke off the exhaust, just like before. Except now, I had a small puddle on the floor. What the heck did I do?

Now, lets go back in time a bit. When I took off the cam pullies, I put the bolts in a bag, just like always. When I returned to the car, I noticed that oil was slowly dripping out of the front most cam. I looked it up on the forums and realized that this is normal. So, I took a rag and laid it in the engine to catch the oil.

After missing a trip to the lake in the Ferrari, I was not happy with my mechanical ability. My car still leaked, and it appeared to leak worse than when I started.

Then it hit me. The alternator is directly underneath the front cam. And, there is an exhaust pipe directly underneath the alternator. Could it be? After some through cleaning. The smoke stopped. The culprit? When I removed the cam bolt, oil had leaked directly into the alternator. So, when I started it, oil flew out of the alternator onto the exhaust. No way would it all come out at once, and everytime I ran the car a bit more oil came out of the alternator onto the exhaust.

My final solution was high pressure water onto the alternator and exhause while the engine was running. After another freeway run, no smoke. So you see, alternators do leak.