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I just purchased a project 1999 7.3. Runs good but noticed (white) smoking coming from the drivers side wheel well. Upon further inspection there is this hose that is in the coil that runs back up into the engine and connected to this shown in the picture. It also drips oil from that hose. Any help??
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Crank case vent. It is supposed to have a 90* hose connection that connects to the intake tube above it. Because oil mist from the crank case is pushed in to the intake and coats the turbo and intercooler with oil, some people will remove the connection and route a hose to below the emgine.

Google CCV Mod and you can read peoples opinion on rerouting the hose.

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Could you get a picture of the intake pipe going to the turbo?
Looks like some suction hose or something....

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It's the CCV "box" and someone has done, what's called, the "CCV Mod" to vent those oily gases elsewhere (follow that hose, where does it go? Either into a Can or just Vented to the atmosphere). Looks like your inlet tube has been changed for some reason (non stock airbox maybe?) and there wasn't a connection for the stock tube that connected the two. But, stopping the introduction of oily fumes from polluting your intercooler system (specifically rotting the rubber connecting tubes and making them slip-off) isn't a bad thing ;)
 
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