John,

  Is the oil motor oil or 90 wt?

  If it's motor oil the main seal in the engine may be leaking.  If it's 
90wt, there is a seal around the input shaft that might be leaking.

  Feel free to e-mail me back personally if you need more advice.  I 
work in a VW repair shop and know a good amount about VW's.  I also sell 
VW parts through the internet.  Check out my Web site for a list of 
Vanagon parts at reasonable prices!

-- 
   
  Kyle Wade
  Keeper of the Volks-Motorsports page
  Home Page - http://www.volks-motorsports.com