1981 Jeep CJ7 medic can you help me?

Yes, I need to do some compression tests to see if I can figure out if there is an issue with the rings. About 20 years ago. (Wow, its been that long?) I replaced the rear main seal as it was leaking. So obviously I had to take off the oil pan. Unfortunately initially I nicked the "camshaft?" Slightly, and that made the oil loss worse. I replaced the seal a few times before I eventually sanded down the little nick so that it was smooth again, and that seemed to help with oil loss. I did see a small drop of oil in the general area of the rear main seal last time I was looking around under there. So you're saying its possible for air to get through there and cause smoky oil to come out of the rear valve cover (which btw is aluminium, and no longer plastic)?

Recently I replaced the PCV valve, although I am still getting air that comes out, not into the valve cover.
Also to note, I only have smoke coming out, and not a ton, under idle (or acceleration). As I recently changed up the vacuum lines, I need to verify which one is currently causing the issue of smoke escape. I'll take a look at that this weekend, especially since my new fuel filters arrive tomorrow and I'll be messing with those?
Regarding the carb bowl vent, should I attach a line and filter from the carb to along the firewall that is inline with the filter from the tank? I imagine that you would want to keep this filter in a vertical position to serve its purpose.

Thanks for the additional information. I was not able to work much on my jeep this weekend other than replacing the black passenger side mirror with a stainless steel one that I had lying around. My fuel filters were supposed to arrive on Saturday, but got pushed back until today, so guess what I'm doing after work!

Regarding the rear valve cover hole, currently it does not have a vacuum on this. I have noticed that the valve cover has a slight leak on the drivers side which I'll need to replace at some point, but I never made the connection that a leaky gasket could be a source of air. I don;t believe the amount of oil leaking there would be enough to cause this, but its probably worth replacing anyway to see if it makes a difference.

Back to the carb bowl vent, on my 32/36 Webber, basically off the front corner I would attach a small piece of line, and then the fuel filter correct? So I guess it doesn't matter if the filter is horizontal or vertical here right?

Thanks Medic!

The weber has a breather port on the front corner (see attached diagram). Also last night I attached the fuel filter for the tank breather, and was able to do so on the bolt off the back of the brake booster. (See attached)
Regarding the rear valve cover breather that is currently blowing smoke, as this is used to draw in fresh air for the crankcase, you mentioned that air may be leaking in elsewhere, and I think I have an idea. As I have the aluminum valve cover now, the oil fill plug sort of sits in there and doesn't actually fit tight. I imagine this may be a large source of air leak. As this is the case, should I look to find a special plug that I can fit an expandable crank down type of plug, or can I just seal off the back opening that is currently leaking smoky air since its obviously already getting air from elsewhere?

I think the green makes it look more classic. Yes, I need to check the rings to see if I am loosing compression there.
In the meantime, should I not close the rear "breather" to keep smoky fumes from escaping? Shouldn't a loose oil cap provide enough air for the PCV system to draw fumes across the valves and do there thing?

Busy weekend here- Do I actually need a breather valve if my oil cap doesn't fit tight anyway and is an obvious source of allowing air to flow into the valve cover?

Of course I love Him! lol

Here is the valve cover I have
http://www.4wd.com/Jeep-Engine-Performance/Aluminum-Valve-Cover-Kit.aspx?t_c=74&t_s=552&t_pt=8136&t_pn=OAI17401.08

As it appears to be made by OA, I am hoping the above oil fill plug will fit.... however the one that came with it, and the one that I have on it now are more of a simple push in rubber plug.

It's not cheaper.

Did a compression test this weekend:
Cylinder
1. 160, 160
2. 152, 152
3. 155, 157
4. 172, 172
5. 158, 160
6. 160, 160

All of these are very high, which may be related to carbon buildup.

Leakdown test
Cyl 1, air immediately heard and felt leaking from oil dipstick and felt from PCV opening

So, it looks like I have bad rings and will need at the least to do a new or machined head, rod bearings,

Fun weekend, but basically what I was concerned with all along which explains the blow by

I'll definitely try giving that a shot. It cant hurt!

So true!