99 A6 2.8 Valve Adjuster Repair

Came out to the car last Sunday to find a puddle of oil under the car.. Looked at the dipstick and no oil registered. Didn't trust driving it to the nearest Audi dealer (9 miles) so had the hook come and get it. Turns
out the problem was something called an oil separator (possibly in the cam adjuster area?). The write-up indicated the "cam adjusters froze causing undue oil pressure". This caused the oil to damage the gaskets and caused a major leak.
Anyone know what an oil separator is what it does in the context of the cam adjuster mechanism?
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So the Audi place fixed the CAM adjuster oil problem; however, they did not fix the entire oil problem. Seems to be leaking oil from the front left portion of the engine as well. Took the car over to the local oil change place and had them remove the shroud cover from the bottom and went underneath the car to take a look. Oil coming down from the vicinity of where the dip stick meets the engine but lower. Looks like there might be an oil cooler in that general area but lower, behind the bumper. Looks like high pressure hose in the area.. Could it be cracks in the hose or possibly a weak clamp?

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Turns out the head gasket installed on leaky side was bad. Had to replace. All is well now. Also found out what the oil separator does. Similar to something you would probably find in a diesel engine, the purpose, as the name suggestes, is to separate oil from water vapor and other contaminants. The separated oil is sent back to the crank case. The contaminates and water vapor are rerouted either to be burned or eliminated to the outside atmosphere via a breather tube..

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