95 SC bit of a oil burning smell

[pdgizwiz]

I don't believe there are two O-rings. Here's the diagram from my '97 FSM:
Previa-dist-exp.jpg
Previa-dist-ORing.jpg



The part labeled "packing" is a dust seal. There shouldn't be any oil inside the cap. If oil is still leaking by a new O-ring, and the O-ring itself isn't damaged in some way, it may be due to scoring in the surfaces that the O-ring contacts (either in the groove of the distributor body or the bore in the rear intake cam cap/cylinder head). And although the mating surfaces of the cam journal cap and cylinder head are machined to a fine finish, I apply a tiny bead of Permatex #3 between them as insurance that oil doesn't leak through that junction.
Still, any such leak would be negligible compared to that of a failed valve cover gasket or distributor O-ring. I figure any 25+ year-old car can be excused for a bit of seepage here and there, if regularly monitored.

There may well be a seal of some sort buried in the "distributor housing assembly" but I have never seen one leak there or tried to take one apart. If there is a significant leak there, I'd probably try to find a replacement.