The TUD5 engine has had revisions as to oil capacity which have been aimed at lengthening the service intervals. My own view is that the latest "full" capacity is excessive and would recommend running this engine to no more than the "3/4" mark on the dipstick.

Coincidentally, this gives the earlier max oil volume. Any engine has to be designed to operate to its full specification with the oil at any level between the stipulated dipstick markings. An allowance is also made for operating on steep inclines.

A TUD5 when overfull will leak oil onto the cambelt from the crankshaft seal. If your camshaft seal is leaking, as it appears, then it needs to be changed. Crankcase oil level has vey little effect on seals at the top of the engine.

If you do this job, ensure that you fully understand the procedure for locking, timing and tensioning the cambelt with both the camshaft and injection pump wheels free on the hubs. Only when the engine is timed correctly with the locking pins and the belt is fully tensioned should the three bolts on each of these wheels be tightened. All of the bolts should then be within the adjustment range of their slots. New belts are marked with the engagement points on the wheels (dot marked) but the crank TDC mark only aligns when the engine is rotated about 1/2 turn.

UK domestic door handle square shaft is a perfect fit in the tensioner hole for tightening the belt. The TUD5 is an excellent small no-nonsense IDI diesel.

659.

ps just to add,
the head gasket wasn't replaced on this car.
It was another one , which unfortunatley is no longer of this mortal coil. :o)