[FC] '63 'vair motor has steady stream of condensation....ethanol related?

[David Houston]

My 1961 GB has a rebuilt '63 sedan motor that was professionally rebuilt. New gaskets installed throughout, etc.. I change the oil every 1000 miles and the oil filter every 2000. I removed the pcv and created a road draft tube which emits a steady stream of steam when the motor reaches operating temperature. I've never seen anything like it. I've been told the ethanol gas might be the culprit. I add Marvel Mystery oil and Max Lead 2000 (real lead) to my gas and use high octane fuel. I'm only getting about 15 mpg since ethanol. If I reconnect the pcv valve the car runs lousy and loses power. There is also a white milky film that is in the oil filler tube.  Any ideas? I just took a carter TQ carb off my '78 NY'er that I use only for towing. The ethanol gas evaporated in the fuel bowl leaving a residue that looked like 'flowers of sulphur". NAPA told me that I have to use an additive from now on.