OK, need some more help. Got the hose replaced. PCV valve broke in half, so I had to pick up a new one at the dealer. Took the valve cover off, fought with the broken threads that were stuck in it, and got them out. (spun it forward a tiny bit with a 1/2" drill bit, then jammed a knife in there and backed it out). Replaced everything.

Took the car for a drive. No more leak! But now my oil light came on. That has never come on before. Also the valves are tapping pretty bad. This car does that all the time, but it seems consitently loud right now, and I'm a bit scared. The light flickered at first, then stayed on. Then after I stopped and started it it seems like it would come on at idle and when the RPMs evened out, but would go out under acceleration. There is definitely oil in there, but I need to let it sit for a few minutes to try and take an accurate reading.

Two questions:

1 - what is the tiny little "nipple" that is sticking out of the valve cover right next to the PCV valve? I swear I don't remember taking anything off of there (and I've had the valve cover off 3 times now and never remember a hose being there) but it looks a little too "clean" to have not been covered up with something. It doesn't feel like there is air coming out of it or a vacuum, but it may be too little for me to feel at idle for all I know.

2 - what would cause the oil light to come on after doing the work I did? is it possible the sensor got damaged by the water/coolant dumping onto it?

Your help is GREATLY appreciated.