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Im not sure why there is all that pressure coming out of that pipe on the valve cover... thats just strange. I never noticed anything like that on mine and mine barely squirts oil. Never any smoke. Im thinking valve stems, maybe the pressure is coming out through the seals from the engine and burning oil in your valve cover.
Im not sure... Id go to the person you bought it from that is just jipp. 3 Grand for a car that needs a rebuilt head or headgasket is pretty bad.
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