It was coming from a botched attempt at a CCV mod. I ended up putting a valve cover breather on the end and it was over pressurizing the crank case. Took the filter off and no more oil leak. Sorry I didn't mention the CCV mod. The only reason I found it was from searching the internet for a good whole day until I ran across a post somewhere that said something along the lines of "7.3L oil fountain".
Next problem is lack of power
, which I had before but figured it was a bad turbo after seeing the impeller damage. Its weird. In neutral, if I rev it up, I can get to about 2200-2300 rpm and it hesitates and bogs, all the while I can hear the turbo pulsating. Then out of nowhere, it screams up to red line (once it boosts). Its noticed in 1st gear mainly, a little in 2nd, third seems to pull through fine, then it feels really dogish in 4th. In 5th the only way I can maintain any speed is if I hit the throttle just enough to here the turbo spool. I get almost no acceleration out of 5th. Oh yea, and the motor vibrates really bad in 4th and 5th and only under power.
I have bought a new fuel pump and will be installing it in a few days, whenever my shop is empty, and we'll see what happens. The whole fuel system is new/rebuilt/cleaned, with the exception of the fuel pump.
It starts up real quick, idle seems to be fairly rough but that's what I've been told about the mechanical fuel pumped 7.3L.
She also smokes pretty good (blueish) at idle, but I'm attributing that right now to the oil I'm running. Valvoline full synthetic diesel 5w-40. Did I mention that I live in remote Alaska and this week I've been driving this thing when its -52F. I used to run this oil in a 2006 6.0L I had for a while and it seemed to love it, but with 206,000+ miles on the ticker, maybe she needs some thicker lube.
That one will have to wait until it warms up considerably (May).