Was told today by AAA that my leak is coming from my distributor in 1997 Toyota Celeica GT. So, what is leaking?

If it is around the distributor,it could be oil,but if you are sure it is not oil,it will be a coolant leak from intake manifold leaking down and around the distributor making you think it,s coming from the distributor.

You need to try to find out what kind of fluid it is so we can tell u where it might be coming from, it's either engine oil or coolant fluid, hope it's not fuel

What color is the leaking fluid.

Oil O' Ring on distributor has failed, leaking oil. (easy fix). Antifreeze will not come in contact with the distributor on these engines unless there is an internal failure of the cylinder head (cracked metal) and is unlikely and if did so and leaked antifreeze it will also be in the oil.

If antifreeze is leaking near the distributor then it will be from another source most likely (head Gasket).

Told by AAA it is engine oil and just to keep check on it and do nothing else. Well, I wasn't satified with answers from AAA, mechanic told me, after driving 75 miles (I drove 91), it would be drained. NOT, was told there was engine oil near the distributor and it was engine oil. Went to AAA yesterday and was reimbursed the $40.80 for dye test and said I would not be back. The engine oil dip stick has always been just where it should be. So what does this mean? I could have it repaired, but everyone says no, just keep check on it. What are your thoughts?

A small leak as it looks like it is. I would just keep an eye on it too, if you notice it leaking at a higher rate then take action. If its just seeping (a little oil around it) and not really leaking (drip drip drip) then wait until its worse or you have extra cash on hand and just want to feel better about it.

Just jeep an eye on it, it might've been spillllled from when they did the last oil change