the oil seal is under the front small gear on the clutch side the seal is for the engines crank case if it is leaking you will need to replace it.
By removing the front gear using the gear puller pop out the seal replace the seal and gear then you will be back in business.
Most kits come with a gear puller. the front gear is held on by a big slotted screw. I show how to do this tear down on my 2-stroke repair center sticky posts I think its the total tear down post. nope not there I put a link at the bottom for you.
the seal can be bought from the vendors here on the forum. I think the vendor in the top left side has them for around $5.00
A good sign of a seal leaking will be black oily poo and have a gas smell to it ,grunge seeping from the
seal area.
look here it shows how to get the gear off.
http://motorbicycling.com/f39/motor-...lutch-301.html