I would definitely check the oil line on a 98 passat. Especially if you have one with the green colored dash lights. I think there is a recall on the feed line on the early passats. I would check into it.
Been there done this many times, the way i found out, was taking off the feed line and staring the car if there was oil going through it i would have been soaked in oil and not one drop came out. i see it all the time on 98 passat's and 97-98 a4's.
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