Jeep water in valve cover

It's not unusual to see a little condensation in the valve cover and if the crankcase has no water in it, that's probably what it is. If it really is leaking, that would likely be a cracked head.

Let's see if the ole PCV valve needs changin'--Or even if the system is hooked up correctly. You should be pullin' in fresh air from the breather into your valve cover. The PCV should be sucking from a big vacuum line on the intake manifold. I know CJs real well, let me know if you need additional help with this or anything else!---I can send pics of some stuff--The Medic. My carb in these pics is an aftermarket Holley 4 barrel, What's on yours?

The PCV valve has absolutely nothing to do with putting moisture into the crankcase or valve cover. It draws fumes OUT of that area.

"Miles to go before I sleep"

Once again, Attempting to assist you, I CRUSADE, AT THIS SITE TO HELP ANY FELLOW CJ GUY TO THE FULLEST EXTENT, Got my 1st in 1981--still have 6 and 7---Always my primary transportation..... "MOST" everything said in these answers could be true...Is this the original engine? If some one has replaced it with a Newer model 258...Like '82 on up, the valve cover for those was plastic......Gives mega oil leak problems! After-market fellers came up with modification to attempt to remedy the problem. Some of which called for drilling and tapping the head to accept HOLD DOWN BOLTS for the plastic cover or to replace it with a High Speed looking Aluminum cover (Many folks did this in their yard, and did not let a machine shop do it) This could possibly account for something drilled too far in.......Regardless, have you pressure tested with that particular bolt removed?On several CJs, including mine, when it was original, Especially the early ones, where the PCV Tube ends up at the center of the intake manifold, close to the fender (not at the Carb, As with a 2 bbl Carter BBD Carb). Mine and others have/ had "MUSTARD LOOKING CRAP" in the inside of the OIL FILL CAP (And in the valve cover too!)....This was "EXHAUST GAS" not pulled out by the PCV system. I found that I had vacuum (with finger) at the PCV---22 inches (with gauge!) But comparing to another Jeep, I did not have the FLOW they had...I took apart the fittings, as it entered the INTAKE MANIFOLD--The Tube and Down in there was restricted with Gray-Silvery Carbon build-up (almost looked like it was made that way!) After getting the restrictions out---Days later, no more "MUSTARD".....This sorta crap can hurt you engine (corrosion and such) Just so you will know what could do this please read "Composition" in the following link--- http://en.wikipedia.org/wiki/Exhaust_gas#Spark-ignition_engines ---And yes, you are allowed to respond, how else will we know if we are helping?--The Medic......was gonna send a few more pics---the Sites "attacher" ain't-a-workin' right now