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Blowing smoke (oil) when hot and failed 'jiggle' test 700 1987

1987 760 Turbo w/intercooler

allright, here's the story...
my car blows blue smoke (i am certain it is oil and not gas; my gas mileage is fine, but i am losing oil) out of the tailpipe, it is especially bad when idling and right after taking off from a red light. The car only smokes when the oil temp dial on the control panel gets vertical (i.e. once it is hot). I have replaced the AMM to turbo hose (had a hole in it) and there is no change. I have fixed a broken gasket on the bypass valve and tightened it up (it was very loose and dirty before) and there is no change. I performed the "jiggle" test and there IS EXCESS PRESSURE in the crankcase (metal cap danced around). My thinking is that the extra pressure is not allowing the oil that passes through the turbo to return to the crankcase; the oil then dumps into the exhaust downpipe and when it gets hot enough it burns/smokes out. Maybe also the excess pressure is forcing oil out of some other part of the engine and into the exhaust, but i am not sure what other component it could be (i automatically suspect the turbo when something is awry).

I have looked at the FAQ about flame traps and am prepared to look for it in my engine, take it apart and clean it or replace it (it is cheap, right?) but i think i also read that the Turbo models don't have flame traps (maybe you can clear this up for me). I have also considered that maybe the return line from the turbo to the crank case is clogged up and so oil can't get through, but i don't know if this will cause excess pressure in the crank case.

so my main concerns are:

1)what causes excess pressure in the crank case?
2)where is the flame trap on a 760 Turbo engine, do i have one or something equivalent?
3)how can i access the hose on the turbo that returns oil to the crankcase to see if it's clogged, and once i find it how should i go about taking it apart and cleaning it?
and 4) what does it mean that the car smokes only after the temp gauge reads hot (vertical)?

thanks so much for your help, i really need to fix this problem but as a poor recent graduate i am not able to pay a mechanic and i would like to fix it myselft if possible.
thanks again,
trina






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