So anyway a couple of years ago (I think) PaulJ modified his EGR valve on his engine to go right into his air filter (which he replaced with a K&N). I was impressed and did something similar except I ran the hose from the EGR into a PVC 1.5" end cap and then a 2nd hose into the K&N air filter. This has worked well, but I was talking with a co-worker, who is a gear head, about diesel engines and he suggested I get an air-water separator like they use on air compressors. So I got one from Sears (on sale for $13.00), a right angle and straight 3/8" NPT to 5/8 barb and some extra hose and hooked it all up. Hopefully no more oil into my filter, and it looks sweet.
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