Update:
My cyclonic oil separator is still working very well. I stopped venting the effluent of it to the oil pan early on and wouldn't recommend anyone attempting that. I found adding stainless steel scour pad mesh loosely packed upstream the cyclonic separator helped separation efficiency while still allowing plenty of volume to get through. I recently had a serious change in volume of my separator setup-I noticed quite a bit of water in it that usually is not there. I went ahead and emptied it thinking maybe weather changes caused more condensation. After a couple months I noticed the same thing again. This caused me to look further into the potential of head gasket leaks or other sources of water. I ended up finding a large crack in my large diameter vacuum pump hosing that allowed moisture laden air to get pulled in and condense in my cyclonic oil separator setup. This vacuum hose crack was slightly reducing braking assist to the vacuum brake booster and reducing power to vacuum driven actuators. I'm glad I had the separator that alerted me to the problem early on so that I could investigate and find the issue.
I am finding that my very small 1/8" diameter bleed line from the lower intercooler is just too small, and when moisture and oil mix it sometimes makes an emulsion that can stick inside the Teflon bleed line. When the emulsion slugs stick it impedes the flow of lower intercooler oil from getting to the separator like it is supposed to. Plans are to move toward a nylon 1/4" diameter lower IC bleed line and use a small metering valve to set the lower IC bleed flow to appropriate levels. Other than that the setup works perfectly and alerts me to my engine system health(turbo seals, vacuum leaks etc).
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2002 VW Jetta TDI 5-speed(completed 01M-5-speed swap at 155K miles) 45 MPG City with the 01M, 5-speed 60+ MPG City. Nokian Entyre Low RR Tires. Experimenting with the "Hybrid" 205 Deg F T-stat:
http://forums.tdiclub.com/showthread...=306799&page=4
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