98 Malibu A/C Problem

The AC on my 98 Malibu (that I just bought) was not blowing cold air. I put a can of R-134 in and now it doesn't work at all. The compressor is turning, but the air isn't cool at all. I thought maybe I overcharged so I let some out but that didn't help. There appears to be something leaking and blowing an oily substance in the fanbelt area. I figured this was oil from the compressor but can't see a leak. The PSI is always around 20 and will not increase on charge, but will decrease when freon is released. I don't know what else to do. I thought about releasing all freon, drawing a vacuum and starting over with a charge. Any ideas?

With oil at the compressor the shaft seal must be leaking, the V5 is famous for that. When you put in 134a make sure the cans have no sealer or booster, not good for the system. The shaft seal can be replaced but you need special tools.

Would it be better to replace the compressor? Or can just the shaft be replaced?

Without the special tools, replacing the compressor is the way to go. Don't buy a chain store rebuilt, it won't last. Lots of good information here.
http://www.autoacforum.com/