Here is a pic of the ptc nipple i am cleaning. I understand basically what it does, however where does the blue arrow go? It does not feed into the inside of the cylinder (red). Is it clogged, or is there a gated mechanism?

 

Clogged. Use a narrow sharp object to clean the carbon out.

 

Maybe these might help.
The PTC itself should be hollow. It's used to create a vacuum to pull crankcase vapors into the intake to burn them. You just need to carefully scrape, drill or soak all the crud out of the inside of it.

 

Are these fittings on a turbo model or only on an N/A model. Never seen one on my 1995 turbo? If so where is it found so I can clean it...thanks

 

Psaboic: of you follow the tube from the pcv system back to the intake, you will see the ptc with hoses attached on the intake tube right before it connects to the turbo.

 

Thanks!

 

It's in the intake tube just before the turbo. If you lean over the engine down form the upper engine mount you should see it down there. It's best to remove the whole intake tube and once out remove the PTC from the tube. If you try to pull it out in place you might damage the rubber fitting it sits in. It's also much easier to reinstall it with the tube out so you can visually inspect it to make sure the rubber seal is good. Some people have used a light coating of silicone sealant at the seal just to make sure there is no leak.