EGR Delete: Pros and Cons

Here's the deal. My brother's new bird has a rebuilt engine with the T3 out of an SVO. The car runs great (chirping the gears going into 3rd), but when driving it that hard, there is literally a cloud of gas coming out the turndown. Tonight he was romping on the car in front of my house and I actually saw fire come out with the cloud of gas...scary. The previous owner deleted the EGR valve. It's plated off and the bung on the exhaust manifold is capped too. The mods on the car are the T3 turbo, roller cam, K&N, 3inch exhaust to 3inch muffler to a dump with no cat, and the rebuild. It's burning oil some too, but not too bad if you aren't stomping on it. What do you think I'm looking at? By the way, one of the pros to the EGR Delete is accessibility to the little screw that holds the dipstick down...that's nice.

Thanks

Kev

ive gotten rid of mine, not for performance, just because my egr cracked in 1/2, so i blocked it off, because i really wanted to have my car running at the moment, i do burn oil now, and i blast it out the dipstick too (im havin weird crankcase problems), it idles i little funny too, turbo seems to spool a tiny tiny bit faster (probly just in my head though)

Mark'87TC, check your PCV valve

Sounds as if you already know the problem its running rich when you run it hard (WOT) and the unburned fuel is igniting in the exhaust.