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Replace just the seal, just $1 at the dealer.
You need to take off the timing belt cover to find out where the oil is leaking from. Usual suspects are the cam seals, which could have been damaged from the previous over pressured crankcase. If you have a turbo engine, there are 2 lines that go from the oil pump, bottom of the timing belt, to the radiator. The seals (O rings) for these lines will eventually fail and are fairly easy to replace, but they are a pain in the neck to get to.
Klaus
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The 164 has a new home, all I am left with are a 95 854T and a 98 V70R :)
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