You shouldn't have anything coming out of that block, except a little bit of carbon around the gas tube exit, when you initially fire it. If you have oil coming out of the front, gas is pushing it out. That hole that's bored right down the middle of that gas block isn't "round," in my opinion. I don't have it in my hand to look at and play with, so I can't be certain, but that's the only thing I can come up with. If it was too large of a hole, it wouldn't have been tough to put on. If it's not round, it can be tough to get on, but it's not going to seal. Just like what's going on here with yours. That thing was made on a Friday, assembly line-style...