It's the PCV.  The valve closes in boost and the only way for the
crankcase the ventilate is through the breather tube that was formally
connected to your airbox.  Blocking that off inflated the crankcase like
a balloon and blew your seal out.  Check all your seals, as the other
cam seal and or the crankshaft seals may have also been pushed out.

On Tue, 2006-08-22 at 22:51 -0700, robert long wrote:
> First of all I'd like to say thanks for the help in diagnosing my boost 
> problem in the t2 rampage. I grounded the fuel rail and the charging code 
> went away. I redid the vacuum lines now i have full boost..... but something 
> bad happed this morning. Let me begin by saying the stock airbox had been 
> replace with a cone filter and the pcv now vents to atmosphere rather than to 
> the airbox. My dad blocked the pcv hose with a plug. I boosted hard while 
> racing a new mustang (blew his doors off) then as i was passing him all kinds 
> of smoke came out of the engine. I MEAN ALLL KINDS OF SMOKE, LIKE YOU 
> COULDN'T SEE FOR 1/2 MILE BEHIND ME!!!!   I got home fearing the worst but 
> found that the cam seal on the drivers side popped out (or maybe popped in, i 
> can't tell) and oil went everywhere including on the turbo which smoked up 
> the whole freeway. Does anyone think there is some kind of problem with valve 
> guides or rings or was it just the pcv being blocked off? I did some 
> diagnostics,
>  checking the lower intercooler hose for oil inside, its dry and clean in 
> there. I checked the coolant with engine running to see if I had a blown head 
> gasket, everything looks OK no fountain of coolant gushing out (no oil in 
> water and vice versa). I might want to put a better cam and followers in if 
> anyone has them for sale since I have to take it all apart anyway. Any input 
> apppreciated.
> Tired of spam?  Yahoo! Mail has the best spam pr
> otection around 
> http://mail.yahoo.com 
> 
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