My XMSi oil leak/lake

[Paulxmski]

Hi can anyone give some pointers to this problem: My XM3si 1990 has a considerable oil leak which runs down over the offside drive shaft onto the exhaust (burning off with horrible consequences) around the sump and onto the ground. Unfortunately I cannot see where the leak is comming from ,either when I put it on ramps or from above! I have only just bought it and after 28 miles the oil pressure warning light came on and there was just enough oil to get to the first notch on the dipstick. When I start it from cold the car will not drive properly and cannot get up revs it drops into a lower gear and wallows. When it has warmed up it quite suddenly picks up and there is no futher problem in that respect. The car is immaculate apart from that with low indicated mileage, although judging by the amount of blue hylomar on every cover on the engine it has been completely rebuilt. I have a XM3sei with a good engine although it's done 140K and the ancilarries have started to deteriorate i.e the a/c compressor belt wheel clutch caugth fire and died 1 mth ago. I am thinking of swapping engines?