I have a 04 Fatboy, bought it in Sept with 239 miles on it. Took it in for service at 1000 miles just recently. I have just started noticing small oil spots on the right side of the oil tank and rightfront lower part of the seat. Little tiny specs of oil, I can't find where it iscoming from. Has anyone had this problem or know what it could be?

Check two places. First check inside the air cleaner and see if oil is puking out of the air cleaner. If it is you may have too much oil in the bike or you have a vent/oil lineclogged or your oil check valve is stuck open and you are wet sumping in the motor. Second check the rear cylinder rocker box cover. If it is loose and leaking just a bit oil will sometmes blow back onto the tank area.

But before you do all of this get the bike up to hot operating temperature and shut it off. Put it on the jiffy stand and allow 4-5 minutes for the oil to return to the tank. Then check it. If it is over the full mark the dealer tech probably overfilled it and it will begin to blow out of the air cleaner vent. Get a turkey baster and suck some oil out of the tank until you get it to the full mark.

The oil is coming from the rear rubber tube inside the air filter, I lowered the oil level to the low end on the dip stick. The dealer told me to change the air filter, could be the cause. Did not look to bad. Found out today that the person I bought the bike from was running synthetic in all holes and the dealer put regular oil. Is this a problem and could that be the air filter problem.

No. The tech may have just overfilled it a bit. Replace the air filter and clean it all off making sure none of the vent hoses are bent or kinked (pull the rubber hose off and see if it is clogged) and see if it continues to blow oil. The syn oil vs dino oil won't make any difference. Check all the oil lines on the bike to make sure none are bent or kinked.

If it stops the oil blowing out of the A/C then check the oil again hot and see where the level is. If it is at the bottom mark on the stick then add back just a small amount to get it 1/2 way between the 2 marks and see if that works. If it comes up to the full mark before you add any back then the guy overfilled it.