Coil leaking oil, is it bad?

Keith,
Knowing what is do about high voltage as an Radio Engineer, I would change out your coil. The secondary wiring (the one that produces the high voltage) generates a lot of heat. It's the oils job to transfer the heat to the metal shell of the coil case for cooling. The loss of oil from your coil is like the loss of coolant from your radiator, sooner or later it is going to overheat and leave you stranded.

Steve

MSD's tech line pretty much said the same thing. Their instructions say mount the coil upright and they reiterated it when I called them up several months back. Even though the way you have it mounted, it doesn't look too severe. But if you are leaking oil, that coil will eventually overheat. Some members have the coil mounted horizontally and haven't had any problems either, so it's hit or miss.