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Originally Posted by eustace
Well birdman, I looked under the hood for the exhaust leak and noticed a whole lot of smoke(exhaust) comming out of the oil filler/ breather cap. Does that mean that the rings are shot, letting gasses pass by the rings? Or is that the valves letting exhaust up past the valves into the valve cover and then out the oil filler/breather cap?
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You have, I am afraid to say answered your own questions or darn close to them. It most likely is a ring problem. Either way it spells the kiss of death for the old FE. Sounds like she is flat wore out!! There are a couple of tests you can do, a compression test and a leak down test. If you don't have either of these it's pretty easy to buy a compression tester and then make it into a dual purpose tool that will do both. You do need an air compressor for the later. You can do a search of the net for "leakdown tester homemade"
How long have you owned the car? How much oil is it using? Is it leaving quite a number of oil spots on the ground? When was the oil changed last? If you change the oil and go with a racing oil like Valvoline and use like a 40 or 50 weight it will cut down on the blowby a little and with new oil the stench won't be quite as bad, but it's never going to get better. I don't recall the year of your bird but the mid sixty's they started using a pcv to control the crankcase fumes and run them back through the engine. If you do not have a closed system like pcv you can probably rig one up to get some of that crap going out the pipe instead of inside the cabin. If it has a pcv you need to ensure that it is working properly. Good luck and keep us posted!!