well we got it all cleaned off and took it for a ride around the block and it seems to be coming out of the gasket where the case halfs come together? motor is only 1 week old.
Just for kicks check around the exhaust gasket. The oil you see in the picture looks like it is burnt. Could be a exhaust leak that is being blowen around the cylinder and collecting on top of the case behind the cylinder. I think if it was a crank case leak the oil would be clean not burnt.
Joe is right that has a crank case gasket leak the engine will soon be toast if you keep riding it the oil that comes out will have the fuel mix in it along with any grease that it can wash out of the main shaft area. When you have a crank case leak even though the oil and gas is clean it will look black and oily where ever it is leaking from. a cylinder base gasket will leak the black oily nasty stuff.
Norman