I have a 79 and I just pulled off my dist cap and noticed oil inside. I'd say maybe 6-7 drops. Then I pulled the whole distributor out and ther was a small amount at the bottom. I'd say 2-3 table spoons worth. There was also some play in the oil pump shaft. Is all of this normal? It's been a long time since I have dealt with distributors but from what I remember it's not.
Thanks for the help

 

Spray out with WD-40. Reinstall. Check again in a few weeks of driving.

This is normal. Notice the hole for the shaft? Oil is all over inside the timing cover.

It might "wiggle" a tiny bit, but should not hit the edges of the timing cover hole.