Glenn,
A number of folks have provided you some good replies and info on things that you need to and should do to correct the PCV set-up you are currently running. The set-up as shown in your pictures is contrary to how it was designed and will continue to cause you oil mess and smoke issues by itself until you take steps to correct the issues.
It also appears from your descriptions of the conditions that yes, you may very well have a worn out engine issue. Typically when you get excessive oil smoke (and even oil spewing out) coming from the valve cover and attached devices/hoses, it is a very good sign that
your rings are severely worn. Oil smoke and spray could also be caused by severe valve cover gasket leaks. Suggest you should also investigate this to make sure that is not the cause of your problem.
As to your question "I need to do a compression test?", my answer would be "yes" based on what has already been described/encountered.
While you digest this info, and consider what your next steps may be, we will await your replies and see what further can be done to help you solve this problem.
Good luck.
