Distributor Seal, FE Ford
Yes, there is a seal around the distributor that could be cut, if so it will leak a lot in that area even with breathers. Then at one time the MSD Distributors, early Billet models, where not the right spec on the the shaft and seal, (too small) they leaked. I know because I had one, I got with MSD and they checked the Ford specifications and made an inline change in the manufacture to correct it. They sent me a new one and it worked fine.
Rick
427 S/C , 427 Side-oiler, 4 Speed Close Ratio Top Loader, 3:73 Gear
#4279405