It could be a number of things, The most likely however is a leaking sump. Possible that its leaking from the nut if its loose or there is no washer, could be from the CV joint also. VW's are famous for valve cover gasket leaks. Oil blows though, runs down and drips from the bottom. I also had to replace the O-ring at the base of the distributor. It was causing the same thing. Bottom drip.
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