Oil in distributor (MF-35)

After running through carburation and other things I cracked the distributor & found that oil was interfering with timely spark. At first I thought it was splashover from the power steering reservoir but that's been ruled out. the problem is intermittent but annoying.

Can anyone help me with a solution?

Thanks,
Craig

1) Excessive wear in the bushings in the distributor itself. (there is supposed to be some slight "up and down" movement so oil can pump up to the upper bushing in addition tot he oil cup on the side)

2)Excess crankcase pressure.

Since it does not sound to be a constant issue, it is likely the bushings. pull the cap and push the shaft from side to side, anything more than about .020 movement (sometimes even a little less) can allow oil to get up under the cap. You would likely see little dirt tracks radiating outward from below the distributor cam lobes as you look down from above.