Well, you kind of answered your own question. If there is coolant seepage at the head gasket, you will need to address that at some point. Old torque specs were 65 lbs, new ones are 80 lbs. However, if that is the old gasket, not sure I would go all the way to 80 lbs without replacing it.
If the old girl is doing the work you need her to do, and no fluids are leaking massively, just go with it. If you want to fix the coolant seep, replace the head gasket, they are not that expensive. Also, is the damp area oil or coolant. I assumed coolant, but didn't think it could be oil and the valve cover. I have a BN that runs good, but seeps coolant out mag side. I have to add coolant maybe once a year, so I haven't gotten all worked up about it yet.
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Today's Featured Article - Trenching With a Plow - by Staff. Introduction: This interesting information came from one of the discussion forums here at YT. We thought we should place it up front so it could be read by anyone interested in putting old iron to work. [Editor] I tried something new today, and it worked so well I thought I should post it - in case it might help someone else. I'm running 100 yards of 4" drain pipe from the gutter downspouts of our house to a pond down the hill. This should hel
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