The oil in the spark plug wells is leaking past the rubber seals at the mating surfaces between the valve cover and the head. Each plug well has its own seal so there are a total of six of them. Oil around the spark plug can result in a misfire like you have described. You can first try to clean the oil out of the wells (see below) to see if this corrects your problem.
The real solution will be to remove the intake and valve covers and replace the seals. I suspect that the valve cover seals are also leaking oil. That's okay because the 2 valve cover and 6 plug well seals are all in the same Fel-Pro gasket set, the VS50378R, available for $71.99 from AutoZone.com (not available through the stores).
To clean out the oil from the plug wells, use a suction or vacuum pump of some sort (manual, electric) to suck the oil out. Also use some intake cleaner to flush the remaining oil and suck out this mixture also. You will need to spray the plugs to clean them off too (can be done with them still installed). Also clean out the plug wire boots of all the oil and use some dielectric grease inside the boots before reinstalling them.
DO NOT, I repeat, DO NOT remove the spark plugs with any oil still in the plug well. There can also be grit in the well that will drain into the cylinder if the plug is removed. This grit will cause major damage to the cylinder walls and rings.
The oil in the spark plug wells wil not get hot enough to smell burned. Remember, there are supposed to be spark plug boots over these wells to keep out moisture and dirt. The boot s wouldn't let many oil fumes out either. I suspect that you valve cover seals are allowing oil to drip down the sides of the engine onto the exhaust manifolds and/or catalytic converters. That would be a more probably cause for your hot oil smell.
Scott
[This message has been edited by sdpatt (edited 02-06-2002).]