Thats really odd about the valve adjustment. You might try and adjust them with the valve cover off while its running. Sometimes a lifter adjustment will hold the valves open till it runs a few seconds, so if you only cranked it, the adjustment could still be off. How does it sound?
All the 194,230,250,292's were hydralic lifter engines, so you may have a aftermarket solid lifter cam.
Something else to consider, if the valves are not adjusted right, oil will really be spraying around under the valve cover and you could just be getting to much in the PCV valve.
Does your valve cover have a deflector inside around the PCV opening?
Joe
