Silly question

My bike leaks a little oil out of the points cover. If I put electronic ignition on her is that gunna be a problem? I bought one of those PCV's from Mikes XS because I heard good things from other people. But haven't installed it .....Any idea's? Pitfalls?

Those are good breather valves, by reputation. I bought one for my Commando but ended up using it on another bike. Put a "KrankVent" on the Commando, which probably works almost as well, for several times the price.

Sounds like you may need a new points oil seal (and the proper tool to install it, or a homemade substitute)?

A pcv unit of some sort may help, but the damage is done and a new seal is needed. It may be just a bad oil seal.
One of the pain in the ass things of pulling the timing cover is having to reset all the timing gizmo's. Since you are doing that anyway, get in there and change the seal and check the timing chain. Don't forget a fresh oil pump sealing washer.
After all is said and done, make sure the contact breaker cover has the hole down. If it leaks after a fresh seal, go ahead and try a oneway valve on the breather.\

As far as oil and EI ignitions, I do not see a problem.

I just installed a new seal this past winter, maybe a bad seal??

How can you tell if the oil pump sealing washer is no good/what does that seal do anyway??? if it leaks through is that a huge problem?, what type of symtoms would show a bad seal??? Sorry for my ignorance

Before you pull it all down, clean up the oil and ride it. This can happen when the motor fills with too much oil from sitting. No seal could hold it back but it will clear itself after it runs. You could be fixing a non problem.

Oil is good for our E.I's, keeps em cooler and prevents corrosion.

Oil pump nipple seals should be renewed about each time you need to open TS case.
Main indicator would be low oil pressure then seizure. Obvious total mash down or cracked or nicks, otherwise likely good to fly even if it leaks a bit too.
Oil seal fit is dependent on oil pump base and TS cover gaskets besides the nipple end.

Cam seal can be nicked installing, use cone stream liner tool or tape on cam edges.
Its possible where the seal sits on cam is rough or worn.
If cam bushes worn might wobble enough to allow seal to deform and leak.
Its not the greatest seal in the world and think they all weep, even in prefect condition. I found an oily rag inside on my first exposure - thought how clever and simple them English were to keep wetness out. Didn't take me long to realize my innocent misconception.