1997 Cherokee-I am new to working on my jeep but pretty determined I can figure it out. Looking around at the bottom of my jeep, there's oil and gunk everywhere. I am not really sure where to start in getting some of this fixed. I know a valve cover gasket was put on a few months ago but other than that I am not sure where to begin. I am attaching some pictures as well. Thanks.

 

Clean everything up. That way you can see what area to look closer at. Oil filter adapter is a common culprit.

 

I've had good luck with the dye you put in the oil. Put dye in the oil, run Jeep for a day, check under the hood at night for the glowing trail(s) of oil.

 

Start up above, and work down. The valve cover gasket may be new, but that doesn't mean it was done right.

As mentioned, the oil filter adapter is another common culprit.

Just clean it up and start looking.

 

Great advice with the cleanup and dye. Thanks!

 

Is there a safe chemical I can use on the parts to help with the cleanup process? That a wirebrush and paper towels.....

 

Doesn't look that unusual for an XJ.

Mine has always looked like that. It doesn't drip, and the oil never goes down, so I am not worried about it. Plenty of other issues to take care of first. Though I do keep an eye on it.

I like using Purple power spray to clean the oil and grease off. Followed by a little water, controlled carefully to avoid the sensors and wiring.

 

I used shop rags and Spray Nine plus some other stuff I had from work.

 

Oil pressure sensor is another common one, but as Blue Ridge said start at the top and work down my valve cover bolts near the fire wall were finger loose when I did mine.

 

My 97 looked the same. My oil filter adpater is leaking for sure, as was the valve cover gasket which i replaced with a rubber Felpro. One of them (probably both) was leaking oil onto the inspection cover for the transmission.

This is everything i checked when i bought it.
oil filter adapter o-rings
valve cover gasket (replaced)
oil pan gasket
oil pressure switch
rear main seal
distributor gasket (replaced)
timing chain cover
timing chain cover/crank seal
drain plugs

Coolant leaks can run down the block and look like an oil leak (dirt soaks up the coolant and turns to sludge), so check the thermostat housing and hoses, etc..

Like said, clean it and keep an eye on it. Dye helps. Out of curiousity, whats the worm clamp for by the o2 sensor?

 

http://cruiser54.com/?p=96

 

The clamp came with the car when I bought it. Not sure why it was on there.

I did a little further inspection today and the oil seams to be coming from the Oil Pan, the area in front of timing belt and the area between oil pan and transmission. Any advice would be appreciated.

 

Put dye in the oil and verify it is coming from oil pan gasket. Changing that seal is a PITA, good to verify it is indeed leaking.

 

Dude!!

Click on the link in post 12 and get to work. Ain't gonna fix it with an app.

 

Damn! Cruiser beat me too it! I was gonna post exactly that, but I guess it's better from the horses mouth as they say.

EDIT: I fixed 95% of my oil leak by replacing the valve cover gasket, and making sure it was tightened down properly. Definitely doesn't need to be cranked on there. All my bolts are only hand tightened.