Oil misting from dipstick tube - blowby?

Is the pcv valve hooked up and working ?

Hook up the other breather to the air cleaner with a rubber hose.

My thoughts as well. You need a constant vacuum in the crankcase (however slight) and you need a setup that will accommodate plenty of volume of blow-by (the driver's side valve cover needs to be plumbed to the air filter). This setup also allows fresh air from the air cleaner to drawn down into the crankcase as well.