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Chuck -- the only places that I can envision from which oil can seep down onto the water pump would be either the cam seal or I suppose the valve cover gasket. Maybe I'm missing something, being a 240 owner...
Cam seal is pretty easy. You need to remove the timing belt (which, on the B230, means locking the crank -- either the special locking tool or the 'rope trick'), unbolting the nut holding the timing belt/cam sprocket, and pulling off the cam sprocket. This seal digs out pretty easily because it's accessible.
Rob Kuhlman
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