Yea I think you're right. The seal looks to be properly lubricated but you can see a gold pool to the left of the starter motor where oil has built up. And the E-bolt next to it seems to be getting cleaned from the flow of oil. I assume the crankshaft turns counter clockwise thus slinging all the oil upwards making it a bit more difficult to pinpoint the leak. My guess is the oil is coming from that bolt hole (or near it). I'll check to see if the bolt will tighten a bit. Is this a bad idea?

I'm also going to clean this area out to try to better see whats going on.

At this point a new cover and seal is about $50-$60 + cost of Special tool 9100 on eBay for $60 so I don't really see a reason not do it other than... inexperience.

Edit: Been looking for Loctite 5203 sealer and only found a few places and this stuff is expensive. Can anyone suggest an alternative gasket/flange sealer? Or does it have to be 5203? Loctite Blue RTV looks like a good candidate, maybe?

What would you do?