oil blowback

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Is it running ok apart from that? Best case cam cover breather blocked, worst rings gone on a piston. This is the one that had the dropped valve i take it. You did of course check that the pistons were not damaged apart from cosmetically.
 
Where is the cam cover to inlet breather is that hose that comes out the side of the rocker cover.pat

Yes that is it. There are two types of valve in the cam cover depending whether you have EGR fitted or not. Read RAVE emission control section for a more detailed explination. If the valve is not working or blocked excess pressure will be vented out of the dipstick, there is no other way it can get out.
 
Start to worry when the rings are so worn and valve guide worn that the engine starts running on the sump oil because turning the ignition off isn't going to stop the engine.
 
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