Het guys. Took the egr valve off and the back line was clogged. Anyone know if I can clean it out somehow. Feels like it goes down to the back of the motor. Also there is a layer of milky white stuff in my pcv valve lines and also the inside of the oil fill cap. It also blows smoke out of the small vent ontop of valve cover. Does anyone where that vent is supposed to hook to. It's 1.6 8v

white inside the oil cap makes me think you got water or coolant in your oil. i had the white stuff in my pcv valve hose on my old jeep and was told it was caused by blowby. not sure if that was what it was from or not but that's what i was told.

It is somewhat normal to see some condensation (milky white) in the PVC valve / line. I wouldn't freak out and go on a witch hunt unless you are losing oil / coolant. See tel tale odd colored coolant in the radiator. Odd colored oil on the dipstick.

Having some moisture in the engine will cause a milky deposit on the cap and in vacuum lines. Sounds like a breather has been left open to the atmosphere if the oil itself doesnt show any coolant contamination.

Ok thanks guys. It does use oil. Blow by I'm assuming? No water/ oil contamination in either. The little hose coming off the valve cover is not hooked to anything. But a lot of smoke comes out it. Does it need to hook somewhere or just put a filter on it.

I am not familiar to the Kicks but I would bet it should go to the breather and attach to a filter element. Hopefully someone else will let you know.

If not I would put a filter on it and tuck it back out of the way some place.

That breather hose from the valve cover goes into a recirculation system connected to the intake, on a 16V anyway. If it wasn't blowing smoke I'd say cap it with a filter and call it good, but the fact that it's smoking IS a good indication all's not perfect in your top end and to keep all that oily soot and smoke out of the atmosphere and your lungs, I'd say reconnect it. Look for a male fitting on the intake manifold or intake tube from the airbox. Check your PCV too, it may be a bit plugged up.
The EGR passage (through the head) can be cleaned with a stiff wire and solvent. It will get clogged if your engine isn't in the best state of tune, but it's not uncommon. Lots of threads about it.
The disconnected breather may be the cause of some of the condensation in your engine, especially if it's been paticularly wet or damp where you are. Or it just may be another issue althgether. Is there any other smoke visible out of the exhaust? What you may be seeing is the moisture burning off. Or a bad ring or valve guide. Does it smoke all the time?
If you tend to drive short distances more than long, it's not unusual to get that kind of condensation in your engine too, just take a look at the water squirting out of  tailpipes on many cars. Most drivers never get there engines up to temp for very long, just long enough to get the condensation started but not long enough to stay hot enough to burn it off. 25 miles on the freeway should do it. I've seen engines with only 60/70 k on them ready for valve jobs because they never got drivin hard or long enough.

You can clean out the PVC valve by soaking it in a parts cleaner such as Gunk or even Kerosine. Once you let it soak for a while shake it in your hand like you wold an aerosol paint can. It should rattle inside much the same.

That port on the valve cover is for the PCV valve, if there is any smoke coming out then it is probably blowby, do a compression check you may have a a ring issue.

Ya it smokes all the time. Burns/ leaks abit of oil to. There always seems to be black stuff shooting out the exhaust. Here's a pic.

Damn man! That looks more like the aftermath of a suicide bomber. Must just be your camera, but it all looks red.

Jef Dunham & Achmed would be proud of you Bentparts..... 

lol yea the red is from the lift. thats the exhauste, lots of clear and black stuff that comes out. as far as the breather there is a big port that is hooked to the pcv valve. but this one is like a 1/4 in and the pcv is about 1/2 in.

There should be two ports on the VC, one is the PCV which goes directly from the VC to the intake thru a PCV valve, and the other is the breather which should connect up to the intake tract between the filter and carb/TB.