Jim, I have the oil separator system on my 82 240D. It is a source of considerable oil leakage (not quanity - just messy). The hoses and plastic parts are not designed to handle much pressure. It would be nice to have the setup in the bottom picture - simpler and only 2 leak points instead of 6.

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1976 240D
1987 560SL
2007 E320 Bluetec
1998 C280 (now son’s car)
1982 240D Manual - Sold