Goody: I put in one of the filters with clear tubing and the filter is laying on it's side and there is oil in the form of liquid in the filter case.
I do have a pcv valve in the drivers side rear and ran to th erear of carb and the oil filler cap in the pass side front which runs to the back of the breather.
New findings.......at 60 mph it has 60 lbs of oil pressure and stays that way ......until you put your foot in it for a few sessions and then it goes to 40 then to 30 and then even down to 20.......then you stop and go to an idle and then it fluctuates between 50 and 60 lbs of oil pressure. Tell me if i'm on the right track. Is my high volume oil pump ( Melling-MELM72HV) doing such a good job that it is pumping more oil up on the 360 heads than can drain down therefore lowering the level on the oil pan(hence the low oil pressure) and in doing so leaving so much oil on the heads that it is sending the oil out the pcv and into the carb thus creating smoke and a loss of oil. The valve covers are baffled.