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catalitic converter problem ? 200 1989

Hello all!

My car yesterday spurted oil from *somewhere* around the valve cover / oil cap.
I was driving down the road and saw whisps of smoke comming from underneath the middle area of the car. It wasn't a lot of smoke, but a bit. Also there was smoke comming from under the hood. When I popped the hood I noticed oil all over the valve cover and down the side of the engine.

My first thought was that I have blown a gasket, but I don't see any evidence of that. The oil looks like it heated up and spurted out of the oil cap and down the side of the engine. Someone told me that the catalitic converter could cause this if it is blocked. If blocked it can cause the converter to smoke or leak exhaust, also it can cause oil pressure to back up and overflow.

I did the "dollar bill" test on the exhaust pipe and it doesn't appear that the converter is sucking air back into the pipe.

So what do you all think? I still have plenty of oil in the engine, but I am afraid it is a big problem!

Help me keep my brick on the road!
--
'89 240 GL 300,000+ miles -- When will this thing ever die? !!






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