[Bob from Northport]

To answer asapguy question. The cooling system was completely drained as well as the oil before any disassembly took place. No water could have come from any loose nuts. We found the three nuts that surround the distributor not as tight/torqued as they should have been.
These are photos of the inside of the valve cover assembly, and for some strange reason a great deal of rust spray under the drivers side of the engine pan and side of the oil pan.
That area was clean and black when it left the shop several years back.