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So you replaced the engine in your 2002 Prism with one from a 1998 Corolla? If that was the case, then you lost the VVT-i functionality of the 2002 engine and probably one of the reasons that fuel economy has dropped.
As for the oil leaking, could be from a number of places. From the valvecover, spark plug tubes, timing chain tensioner, etc. Is the oil concentrated at any one area of the hood?
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2002 Corolla S, 1.8L 1ZZ-FE VVT-i
2003 Matrix XRS, 1.8L 2ZZ-GE, VVTL-i (RIP)
2009 Matrix XRS, 2.4L 2AZ-FE VVT-i
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Linear Mode
