Oil is getting into the Points chamber

I assume that you are referring to a tractor with live hyds. that is mounted ahead of your dist. If that is the case ,the rear seal of that hyd. pump is leaking.
 
The horizontal distributor has an O ring before the bushing but after the drive gear at the base of the distributor housing. You will have to remove the drive gear from the distributor shaft to replace.
 
If we are talking about a cub all the way through this discussion, yes, the breather is on the end of the dipstick and has a mesh that may need to be cleaned, also there is a breather pipe that goes from the block to the air vlenaner that frequently gets plugged either in the pipe or the fitting at the block, but if it is a cub that is getting oil in the points housing either it is being over lubricated, or the seal on the governor shaft where the distributor/magneto mounts is bad.
 

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