The oil out of the breathers could be caused by several things, here they are from easy to hard!
1. Lack of a proper oil baffle under the breather/oil cap.
2. Lack of a PCV system to control the oil fumes in the engine.
3. Excessive blow-by(worn piston rings, cylinder bore, valve guides, etc.) causing oil to be pushed out of the crankcase.
The '66 should have(I believe) a breather/oil filler cap on the drivers side valve cover and a PCV valve in the passenger side valve cover with a hose running to the base of the carburetor or to a plate under the carb.
The smoke?? See parts 1, 2 and 3 above.
HTH
1. Lack of a proper oil baffle under the breather/oil cap.
2. Lack of a PCV system to control the oil fumes in the engine.
3. Excessive blow-by(worn piston rings, cylinder bore, valve guides, etc.) causing oil to be pushed out of the crankcase.
The '66 should have(I believe) a breather/oil filler cap on the drivers side valve cover and a PCV valve in the passenger side valve cover with a hose running to the base of the carburetor or to a plate under the carb.
The smoke?? See parts 1, 2 and 3 above.
HTH