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Oil leak 200 1988

I am working through some issues on my newly acquired 240 wagon. Since I got it there have been some quarter sized drips on the cement after driving it. I put some 5w-30 in it to top off the oil and went for a short (15 miles) drive. When I stopped at my destination there was an odor of oil burning so I pulled over to investigate. There was oil on the valve cover, block, and dripping down to the filter and assorted lower points. No oil on the underside of the hood. I think that the cap seal is bad and that it was leaking the thin oil out from under it. I am a dreamer though and hope it isn't something more sinister. Can anyone tell me what to look for? Thanks for any help you can provide!






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