coreelements

Hello all,

Need some help working on my 99.5 A4 Avant 1.8T. First of all I have not done much work to this car at all so I am new to it.
I have discovered a leak from the valve cover on the back side of the engine near the firewall. THis leak drips down on the exhaust and makes a nice odor. I removed the bolts and when I got to coil packs off the end down in the engine was ver wet from oil....Is there suppose to be oil in this part where the spark plugs are? Basically all but one plug is submurged in oil.

I am also doing a timing and water pump job with all the belts and tie rod ends....I guess I am asking for it..
I downloaded a DIY for the timing and pump but. I am currently at the pulley on the water pump..it is not coming of as I broke the old belt and it is hard to hold this and get bolt off...