It does not appear to be leaking from the valve cover, there is oil all along the lower part of the lim and going down the back side of the engine as well. Its not a lot of oil so its just a slow leak, when I put the engine together I reused my old lim gaskets instead of the cheap plastic ones that came with the kit, and the end seals didn't hold up so well, looks like it didn't seal up like I was hoping it would. I'll just replace them when I do my cam.