The PCV system is quite an important part to the oiling system of your motor. As you see in many preformance builds of motors people put on the crank case breathers on the valve covers with the filters on them. The idea behind this is that blowby happens in limited amounts in all motors, so eventually there will be positive pressure in the crank case. When the crankcase is charged with pressure, oil stops flowing in behind your pistons. The pistons suck the oil up behind them to coat the cylinder walls and lubricate, if your PCV system isnt working right positive pressure builds, and it creates air bubbles in the crankcase that prevents oil from circulating behind the pistons. GM found there was gas fumes inside this blowby air, so they put a little check valve on it and recirculated it to the intake for a bit of extra gas mileage.
Anyway, now that I have the whole PCV speach out of the way, any activity through the PCV spot on your valve cover indicates what is actually going on inside the crankcase of the motor. Common with old motors is extensive amounts of blowby and huge amounts of pressure being built up. Usually a massive amount of air coming out of this port indicates a blown piston ring. Smoke is in ways a more common and a more rare thing to find from a PCV hole, as there is no one reason there should or should not be smoke coming from there. In most cases it is caused by blowby igniting small amounts of oil, but it could be caused by failed or close to failed bearings creating exessive heat and burning oil. In either case I suppose it involves burning some sort of oil and nothing else, neither are good or normal in most cases, unless it is in very small amounts.
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