As I understand what you are saying, you have an 85 300D Calif. model, and still have the Calif. air filter that is mounted behing the R/F headlight.
You now have an 84 engine from a Federal model.
The original set up for the 85`s, had the vent line out of the top of the Valve Cover, going into the top of the Cali air filter, but just before the filter is a rubber connector that pulls some of the blow by gasses straight into the intake hose just before the turbo. you can thank CARB, the calif air resourcers board for this invention.
Now you are saying the drain tube in the pan that would come from the Federal air filter that normaly sits on top of the engine is capped? You can either source a Fed air filter and the mount, drain tube and run the VC vent to the top of this filter.
Now if the guy that did the engine swap used the Calif intake and exhaust manifolds. then it won`t work, It all sits up too high. then you would need to source the Fed intake/exhaust manifolds, or jurry rig a oil seperator that would drain into the drain tube in the pan.
There are some pictures in the archives. i`ll see what I can find.
Welcome to the forum.
Found this picture showing a seperator mounted by the firewall, and the routing of the hoses.
Crankcase ventilation/Oil Separator Mod
The 82 -83 240D`s had this type of oil seperator. I have one Iam eventually going to add to my 85.
82 240D oil separator
Crankcase ventilation/Oil Separator Mod
Charlie