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So I have a 1977 Firebird that some previous owner put a Small Block Chevy 350 in many years ago. I installed all new wires, distributor and put an MSD ignition in and took 'er for a boot down the highway yesterday. After a little while I smelled something burning, pulled over, popped the hood and found oil all over my shiny new ignition module. It turns out that this thing:

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Was spurting oil whenever the engine was turning at more than an idle. I think this is a vacuum operated heat riser so since I now have an edelbrock carb with an electric choke can I just rip this thing out of there? And if I do, will there be a hole in the crankcase I need to block off with something?
 

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I think that's some kind of weird pcv valve. If so, it's supposed to go in the open hole in that valve cover. Does the hose connected to it go to a vacuum source? Does the other valve cover have a breather in it?
 
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