Ken, on two recent rebuilds of older engines, i used a PCV valve and vented oil filler caps. one was a '52 Ford six and the other was a '54 Chevy 235. I used grommets and PCV valves for the newer Chevy sixes in both and got rid of the old draft tubes. At 5,000 miles, i adjusted the valves on the chevy and there was no sign of condensation, or sludge in the valve cover. There's gotta be a way to draw out that moisture! I really hope that's the only problem you have. Nothing's worse than having to go back into a freshly built engine!
