Leaking between!
 

The area where the gearbox meets engine is quite wet with oil!, Is it most likely the oil seal at the flywheel or something else? :(

Is it engine oil or transmision fluid? if it's engine oil (most likely) than it usually is the rear main seal (seals the crankshaft/case), The seal is cheap, but getting to the seal requires engine removal (assuming you can do that yourself, it's not to much fuss replacing that rear main)

BUT... i would recomend cleaning that area real good (almost spotless) so you can pin point the problem (break clean looks great for this!). It could even be the case halfs, oil plugs...ect

Just think of all the deatailing you could do with the engine out though :D! HOW FUN!!!

Jonathan

Thanks Johnathan, will have to take the engine out anyway, changing to 1.48 rockers.

Cool... whenever we have engines out (vw & Porsche motors) we always replace the rear main for good measure.

And when I take engine out, I'll chance the trans seal too. Easy to do at that time. VW part# 113 311 113 A (or C).

Thanks guys, appreciate your help. :)