Howie, I assumed that the baffle underneath the rocker cover would do a better job of keeping the splash down, but the main thing is it is not a sign of a bigger problem. When I pulled the bottom bell housing bolt on the driver side it was soaked in muddy oil, and the one above it was wet. The back of the engine was very wet with oil, some down from the rocker gasket, but I'm guessing the rear main seal is leaky. 
I'll be asking for advice on gaskets when we have it open. I'm going to take more pictures, then clean it before I dismantle.