I think you guys are confusing the positive crankcase vent system used on some of the California 12 valve engines (and diesel cars) with the cooled EGR system used on the VW TDI and proposed for the Cummins. The older system simply feeds blowby from the crankcase back into the intake manifold to be re-burned. This reduces emissions by maybe 10%. The cooled EGR system is much more sophisticated and carefully meters a small amount of exhaust back into the intake manifold after passing it through a cooler in order to reduce the combustion temperature in the cylinders. This is an effective way to reduce NOx emissions, which form at high temperatures without seriously affecting performance. This lets the engineers move injection timing back to a more "natural" state. This system has been used in Europe with good success for years. The only real downside is that lower combustion temperatures and re-circulated exhaust tend to increase soot in the oil. Thus, the CI-4 oil specs designed for EGR diesel engines have enhanced soot holding capacity relative to the older CH-4 standards. Soot is unburned hydrocarbons, mostly derived from aromatic components in the fuel. Since removing sulfur also converts aromatic compounds, low sulfur diesel produces less soot than the current ~500 ppm sulfur, 40-45 cetane fuel sold in most of North America. European diesel generally contains only 50-100 ppm sulfur and is rated at >50 cetane. Since aromatic compounds contain less energy than paraffins, removing aromatics also increases the cetane rating of the fuel. This is an added bonus of ULSD that can be utilized by engineers to increase the power and efficiency of the engine. ULSD with a cetane rating of over 60 is available from ARCO in California right now. The older engines run fine on this stuff. The newer engines should run even better once this type of fuel is generally available.