Are you saying oil comes out of the distributor,, or just around the distributor base gasket?

If it's actually inside the distributor, the only thing that makes much sense is that the distributor bushings are worn out, and you have excess crankcase pressure.  Do you have oil coming out of the breathers at all, or dipstick tube? 

OK, you are not relaying enough information to know what the problem is.  I assume the distributor hold down is tight, or you have checked to make sure it's tight.  What's the gasket look like,, maybe it's damaged and just needs replacing.  Maybe check to see if a feeler gauge fits into the area where it's leaking?

It was a new gasket. And the u clamp was tight. I could understand maybe if the oil was seeping out but its spraying out. I was thinking of replcing the pcv valves just to make sure they are working properly. But I wouldn't think them not working would build up that much pressure for the oil to force itself out somewhere. This problem is very confusing.

I would think it would push the dipstick out first, unless your pan has a screw in dipstick.  You may have a lot of crankcase pressure, a leak down test could help determine that.  I would still think there is a problem with your new gasket, I have never seen oil "spray" out of a distributor gasket.  I would say have another look at the gasket, maybe it got pinched or didn't seat right.  Did you replace the gasket because it was spraying out already?

It does have a screw in dipstick. I had replaced the gasket because it was spraying out of there originally. What is a leak down test? I also thought of replacing the distributor. Maybe it isn't seating right on the manifold. I've asked a few mechanic friends what they think and I get the same "never heard of it doing that" response. Very confusing.

A leak down test can tell you if the rings are not sealing, and creating excessive crankcase pressure.  How old or tired is your engine?

If the dipstick screws in, and you only have a PCV valve (or two of them), and the PCV valve(s) stop working, there is no place for the excess pressure to vent off.  I put some sort of breathers on everything I build.