Water mixing in breather system, oil coooler??

A&Q about 350Z
Q:

Hi all
The latest thing with the mk3... (2E '92 8V)
Ive noticed that im getting white sludge in the breather system.
Its bad around the PCV valve top connections and the short piece of pipe that connects to the thottle body.
Also the long crankcase breather hose seems bad as well.
Theres no white sludge under the oil filler cap or on the bottom connection of the PCV valve.
Can a gasket around the oil cooler fail to create this sort of problem or am i looking at other issues?
Cheers guys
A:

It's most likely just condensation, do you do a lot of short journeys?
A:

I wondered if was condensation but now im not so sure..
As for milage, about 20miles a day, too and from work. Guess the engine dosent really get at working temp for very long.
Ive have been cleaning oil out of the breather regularly and not seen any sludge. I looked a week or so ago and found it starting to form just around the PCV valve.
Its been missing and generally crap running, i changed the fuel filter and things improved though.
But the last fews days ive noticed that it felt like it was not firing on all 4 cyclinders until it warmed up (only when it was really cold)
I cleaned all the breather system out tonight and the missing thing didnt happen.
Looks like the sludge build up was affecting the mixture maybe?
This looks like more than condensation now to me, there was quite alot of it and it looks like the water level in the expansion tank has dropped, though not massively.
I did a compression test maybe a week or so ago (for the other problems ive had..) and things didnt look so bad being pretty equal across all four.
Maybe read a bit high but maybe the cheap gunson gauge...
Really not sure now
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