Blowby!!!!

First off, I have an '87 XJ 4.0L (165K miles) and have tried most remedies I have seen listed here and the most success with using a steel brake line (3/8" I believe) bent like the factory plastic junk on the back orrifice and a K&N Valve cover breather. The K&N filter was a tad big initially, but nothing a dremel tool-to-the-cover couldn't fix. Now I am experiencing a burning oil smell and a small puff of smoke out of the K&N. It has been maybe a year or more since I have taken it off and thoroughly cleaned it out. The last time I did I used a 1/2" drill bit and drilled 4 holes on the on both of the tunnel/funnel things that hang down off of the valve cover. I have heard of cutting them off/down, but thought I would try the bored thing first; and has worked fine for over a year. After I noticed what it was doing, I immediately checked the oil level and it was still ~full considering 300 mlies from my next oil change. So I decided to use Gunk's engine flush and changed my oil 5 minutes later. It doesn't appear to be burning oil out the exhaust yet, so why is it billowing out the breather? The vacuum line flows freely and there is some smoke billowing out of it as well, when disconnected. I have been noticing the burning oil smell for a few weeks now and finally had a chance to look at it this weekend. Oddly enough I have been getting better MPG in the last few weeks and it runs smoother than it ever has. I have never used any additives, with the exception of the engine flush after I noticed this problem. The only changes made in the last month was that I pulled the vacuum line that went directly to the EGR valve from the solonoid and capped off the other end. I like being EGRless so well I plan to fabricate a plate to cover where the EGR is on the intake and buy a plug for the Pacesetter. Any suggestions for the billowing cloud of smoke? The smell enters the cabin with the windows up and doesn't promote a nice commute. You have to have the hood up to see the smoke and it has even started to smoke before it has warmed up ~120` or about 3 minutes!!
Thanks

Anybody got any suggestions???? The stench is getting progressively worse, especially now that the humidity is out the roof here and adding more stress to the engine having to use the AC all the time!!!

Thanks

Try the OEM forum and see if you get any response.

i tried the same thing, putting a breather on the valve cover. most of the problem accured at highway speeds with the smoke coming into the cabin area.

my conclusion was the at highway speeds there is very little vacuum. so what would happen is the air was not being pulled into the valve cover because of the lose of vacuum. because of expansion and pressure in the valve cover, the gases and fumes are being pushed out of the breather.

i could be wrong, but this is what i came up with.
i just went back to the ccv system and clean the lines regularly.