Hi Rich,
Yes, the Dragonfly does have breather - it is mounted on the inside of the alternator cover. It is a steel disc with 6 holes covered by spring steel 'petals' - this allows fumes to breathe out but prevents air entering the crankcase. It is often found that these 'petals' are perforated or rusted away completely, resulting in the oil loss you are experiencing. The gases passing the valve travel through a drilling to the bottom of the alternator cover, and then through it's joint face with the timing cover, and through another drilling to exit from the short spout just off-centre of the bottom of the timing cover. If no breathing is evident from the exit, check that the necessary holes have been cut in the generator cover gasket ( there are 2 of them - one is for the breather and the other is the oil feed to the crankshaft).
Regarding the oil leak - you may have problems locating a suitable size grommet for the cable. I normally try to find one that is a good fit in the case, and then shrink on some heat shrink sleeving to the cable, until it is a good fit in the grommet.
The partial vacuum in the crankcase doesn't affect the 'mist oiling' to the rockers - this is provided by the pumping action of the 2 pistons rising and falling together.
Regards,
Eddie.
