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oil leak 900 1996

I own a 1996 volvo 960 wagon. I love this car but I have an engine oil leak. I put the car on ramps today and looked underneath it. I cleaned all the oil I could off from the bottom. The oil seems to be leaking from the top of the transmission down next to the transmission pan. About where the end of the bell housing meets the begining of the transmission pan. It also drips onto the exhaust pipe and that is where i get my oil smell from.

The car has 216,000 miles on it and was well maintained. I have no idea why engine oil would travel that far back. Any ideas would be appreciated.

I also notice a raw gas smell comming from the tail pipe when I start my car up.
My guess is worn rings. I noticed when i pull the dip stick up I can see a little milky color on the dip stick.

Any idea where the oil filter is located on the car? I cant find it.

Thanks in advance.






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