It could be leaking out the intake (not real common) or it could be leaking out around the dist. but usually there is not enough oil present there to leak like you speak of. Could be a couple of other things too. Maybe valvecover on that corner or timming chain cover.
As for the headgasket it is possible. You usually get some coolant in the oil. And if you watch in the radiator you can sometimes see the antifreeze bubble.
Heads off a 88 Gt will work on your car and add more power. However don't do this if you have a cam or plan to put a cam in it because you will most likely have PV (piston to valve) clearence issues since your motor should have flat top pistons where 87+ motors have valve releifs.
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04 Screamin Yellow Cobra
KB 2.4 (585/556 pump 626/666 race)
00R brakes, DFX clutch, Level 5's, return fuel system, Lts with 3" exhuast, FR500 wheels and all the other fun stuff.
GONE 1991 Lx sedan 5.0, 5spd (Liberty proshifted TKO) S-trim, Ported TF heads everything parted out.
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