Well of course oil blowing out of the engine is a bad thing, Pat. What's even worse is slipping around the garage on the oil that's blowing out of there.
What I mean, is this: With the timing cover off, is that compartment supposed to be wet (have oil entering and exiting the chamber), or is it supposed to be a dry chamber, like where the alternator is housed?
When I have the timing cover off, oil spits out (not a ton of it, but enough to be annoying and beg the question of is there a seal behind the starter gear or not).
I'd rather not tear the assembly apart to find out if someone out there might know. The diagrams in the shop manual and Clymer leave a lot to be desired and don't really answer the question.
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RetroJoe
1979 CB 750K