Fuel economy issues

That oil spray is most likely the intake manifold gasket. If it isn't sealing correctly it will create a vacuum leak and will also suck oil into the intake tract which would definitely contribute to your fuel economy issues (also cause a loss in power and consume oil).

It should take you just a few minutes to redo your timing curve with that E-curve distributor; MUCH easier than the stock one that uses mechanical weights and springs that you have to fool around with, lots of trial and error. Take a look at the instructions on the MSD site, seems pretty straightforward as long as you have an accurate timing light and timing tape.

Which makes sense to me as when I took off the little rubber boot on the throttle body the gas was dark and seemed like it had oil in it, so that explains allot. So then I would need a new manifold gasket then, easy enough then, I'm guessing Mopar Performance, stock gaskets will do?

That is why I got an E-Curve distributor, I was very tired of messing with weights and springs. It is very easy IF you have a timing light AND timing tape, I have no timing tape at the second as the old one fell off and I can't seem to find a replacement at the second, still looking to find one though.

And valentino automotive thanks for the engine shop, I'll look into that one.