What is this device that's sending oil into my intake?
 

On the drivers side valve cover, there is a bit cylindrical thing, maybe about 4 inches diameter and 2 inches thick that attaches the valve cover and has a port that goes into the valve cover, then a 1" diameter rubber hose goes from it up to the intake, after the air filter but just before the turbo. That hose is full of oil, and the intake to the turbo was all oily too -- could explain some of the blue smoke. I'm wondering if that thing has something wrong with it and it's not supposed to letting all the engine oil up into the intake... I'd guess PCV valve, but it's the biggest PCV valve I've ever seen if it is, and it's not at all what a new PCV valve for this engine (according to the parts store) looks like.

Another piece of info... the air cleaner was pretty shabby. I put a new one on now. But perhaps too much pressure drop from the air cleaner was causing the turbo to suck air through the valve cover instead?

Thanks

Z

Its called a CDR valve. if you do a quick search there are methods of cleaning it. It may be beyond cleaning and need replaced also.
Rob

Thanks -- that looks like exactly what it is.