Roy:
I know a number of owners that have had this issue. I'll post their comments below for you:
"I had this problem from the first day I picked up the car. I found oil leaking down the right [curb] side exhaust manifold pipe. Because it was hot, it was burning off and not leaking to the ground. My Ford dealer first tried to replace the
valve cover gaskets ...no help, Then they had to [are you ready for this?] PULL out the engine and reseal it, that cost Ford $ 3000. That seems to fix the leak but I had to take the car back twice to get all the things the mechanic left loose redone"
"I have an ‘02 with 40,000 miles on it. I had the same smell that turns out to be the dip stick tube was leaking, and needed to be replaced. This is the second time this has been done. That took care of the smell."
"The oil smell we had was because they did not tighten down something at the back of the engine when they replaced the gaskets on the engine after they repaired the c.o.p. problem. The oil leaked heavily. (not even sure of what gaskets they had to replace)."
"
Valve cover gasket on Drivers side I had to replace mine at 72,000."
"Our ‘02 had the exact same symptoms. Took it to 3 different dealers before the last one found a
valve cover gasket leaking. Never leaked enough to spot the floor, but enough to get on the exhaust and smell the car up after driving 5 - 10 minutes."
"Mine was the whole right hand
valve cover gasket. The first two shops (Ford Dealers) that could not find the leak said that it for sure wasn't either
valve cover gasket. The 3rd dealer which is the one I bought the car from said it was the passenger side v.c. gasket. Apparently they were right as have never had the smell again."
"After crawling under the car and carefully looking and feeling around I found a small (and I mean small) area on the passenger side
valve cover where the oil was leaking . The amount was miniscule but because of the position of the leak it was dropping right on top of the exhaust header and burning off after 5 or 6 miles of driving. The drivers side was dry all around .
A bit of research on the Lincoln LS forum lead me to a page showing the process for replacing the gasket so armed with that knowledge, off I go to the Ford dealer. They had never experienced a gasket leak before on an LS or TBird and didn't have one in stock - ordered and came in 3 days. $86 Canadian dollars later I held the gasket kit in hand, wondering how these simple pieces of rubber could be worth that much money."
I hope this info helps you - Afterall, that's what the forum is all about!
😎