Regarding the spout of the PCV that was blocked up I found this post on a Range Rover (which uses the same M62 BMW engine) forum which suggests it IS beneficial:

Hi I have been following. Keenly and yes I can confirm that that little orifice is you primary issue, it is sucking in condensation which in turn freezes and blocks the pipe once the engine gets cold. The mechanics should have blocked it the FIRST time they changed out the pcv valve. If they had paid attention they would have seen the old piece. They removed was blocked. So cap that hole and you will be all set.. Isn't it amazing how such a trivial error can cause such a huge headache?. peace.

Thoughts.....?

__________________
2002 (05/02) 4.6IS X5 (Estoril Blue)