I have never seen a seal on a distributor shaft - they are usually "open" so the bushing gets oiled. Yes, PCV system is a good place to start. Is there oil coming out of the dipstick tube? That's a common sign of PCV trouble. With the engine running can you feel pressure coming out the oil filler cap hole? Too much blow-by (worn rings) will blow the oil out even if the PCV system is working. The only other thing I can think of to put that much oil into the distributor is laying the Jeep on it's side. Best of luck - John