The N/A! My old favorite
First thing to do is remove the short piece of breather pipe between the oil filler cap and the intake manifold. This little bugger can lead to all sorts of problems, BUT it also prevents problems which I'll explain in a moment. With the pipe removed. Start the engine and allow it to tick over / rev it up to temperature and then perform the following test:
1) Remove the oil dipstick from the dipstick tube and press your thumb firmly over the hole.
2) Observe the breather outlet on the oil filler cap. The oily mist ('blow-by') that you see gushing out of the hole should increase slightly.
3) Next, fully block the breather outlet on the oil filler cap and also press your thumb firmly over the dipstick tube and hold both hands in place for 5 seconds.
4) After 5 seconds, uncover the dipstick tube. Does it produce a loud hiss, and / or spray any oil out at you?
If this is the case, you need not worry. With time these engines become tired, and even following a rebuild there will still be intolerances due to the ovality of the bores which are worn into an elongated shape over the years of hard work. THIS ISN'T THE END OF YOUR ENGINE THOUGH! No, not by any means! It s generally accepted that the N/A is one of Land Rovers most solid and reliable engines and it genuinely will last for ever providing it's well serviced.
If you did notice a lot of blow by from the test above, then the oil that you are burning is undoubtedly being fed to the engine via the breather pipe that you removed earlier. Basically any combustion that seeps past worn oil seal rings or piston rings that don't quite fit blows oily fumes straight down that pipe and back into the air intake, where the oil is then obviously drawn into the cylinders and burned as fuel, hence the blue smoke.
You do not however, want to remove the breather pipe completely. It prevents your engine from developing oil leaks due to the build up of pressure. The whole idea of the breather being that the downward stroke creates a vacuum which draws the escaped combustion pressure into the cylinders. You should fit an oil catch tank which will keep the breather in place, but prevent any oil from getting into the engine.
Eventually if you hadn't have done anything, the engine would have run on its own oil where it effectively sucks so much oil into the cylinders that it revs higher and higher and the only way to stop it is by whacking it into fifth and braking as hard as you can. If that fails BOOM!!!
-Pos