[dgluyas]

I run a 2332 cc T1 on the street and had the same problem . The problem is with breathing the engine. I have almost cured it by running vented rocker covers. When I say almost cured it in much better than it was and ammounts to a few droplets under drag racing conditions. The problem I have was worsened by running the Porsche fan conversion because the original breather in the conversion kit is much smaller than the original volkswagen one. Remember to run the catch with this breather setup as high as possible .

. The other thing to check is the tollerance of your pulley. If its a cheapy it does not have to be off much to allow oil to get past .
One final thing is to check your oil level with a proper dipstick. I was using an aftermarket chrome one and the upper level was WAAY out . A portion of my problems were overfill of oil.! I now run it on the lowest level.
Good Luck! 2332 is not too big for the street ! All depends on how you put it together