New to the game ISSUES

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

A similar thing happened to me. The rear float stuck open on the carb and the motor processed a ton of gasoline. End result; the excess gas washed the oil off cylinders and the crankcase became pressurized, throwing oil out of the breather, the dipstick and out the tailpipe. I didn't know what was wrong, just that the motor was suddenly running badly. So I drove it home. That is where the damage occured. By the time I got home the rings had gouged the cylinders and the motor was ruined. I had to rrebuild it. Pull you dipstick. If you smell gas in the oil, you may have a similar issue. If you change the oil a couple of times, it will run ok for a while if you baby it. However, the first time you romp on it, it blows oil everywhere. If this happened on your way home, the previous owner mave known about it and unloaded the car to keep from having to rebuild the motor. You may have gotten suckered. I hope not.

65fstbk

Make sure oil return holes aren't clogged up in the heads. They are located at each end of the head on lowest point by the valve springs.

65fstbk...71cpe....73cpe....05 GT 5 sp

Thanks for all the info/suggestions...I hope I didnt get suckered either!