Yes, the side cover over the pushrods and valve lifters will cause an oil leak right where you described it. It sounds like it's time to pull some sheet metal, at least the valve cover and the side cover, and the oil pan might not be a bad idea, too. Oil and water from the crankcase might indicate a frozen and cracked block, so it's better to find out now before you get a lot of time and effort invested. Fill the radiator with water, and see if any leaks out, either inside or outside. (Leave the oil pan plug out)

I like to use Kroil to free up a stuck engine.

www.kanolabs.com

You can order it direct on their website. Good stuff!
Jerry

"It is better to be silent and be thought a fool than to speak and eliminate all doubt!" - Abraham Lincoln
Cringe and wail in fear, Eloi- - - - -we Morlocks are on the hunt!
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