The valve cover to head seems clean and free of oil, but there is a little oil around the head to the block. Could this be a problem, shouldI re-torque head bolts? Or wouldyou not recommend this?

 

Clean it up and see if it comes back. If it's coming back fairly quickly, look into replacing the head gasket. You can do that fairly easily in the driveway over a weekend (or even in a day with some mech skillz and a little more than basic tools), but while it's all apart, you might as well have the valves done and check the head for warpage.

Re-torquing the head bolts won't do anything for you. The gasket is crushed as much as it's going to crush, and applying more torque will only stresse the head bolts even more - possibly snapping them if they're TTY bolts (Torque To Yield - meaning they only withstand XX amount of torque).

Clean it up and see what you have first, though.