Hey BarryB I fixed my vent tube like the one in your photo. I turned the thing upwards and attached a clear hose. I curved it backward (towards rear wheel) and zip-tied it secure. The outlet of the hose was about even, if not slightly above the vent hole.
I mention that because I got another puddle of fluid.
I got another puddle and I did not even run the engine.
It seems that there is some sort of siphon action going on. I am beginning to attribute this towards the barometric changes of the spring weather fronts moving through so often right now. I say that because Of my next observation.
When I found the puddle again, I cut the zip-tie and moved the hose, which is about 10-12 inches long, and placed it so that the outlet is straight up.
I did not see another puddle, but when I checked on it, there was about six inches of fluid in the hose. The level of fluid was actually several inched above the crankcase.
So I opened the fill hole and when I did, the fluid receded back down the hose and into the case.
I finally have my S3 kickstand and will install soon. So my going hypothesis is that there is a vent passage or flow inside the crankcase that is blocked or inhibited some how when the bike is tilted way over on the side stand, due to suspension mods. It is this "blockage" that allows the pressure to build with the case, that pushes fluid out the vent hole, which is lower than normal due to the extreme lean. When the fluid gets pushed out enough, it starts a siphon action sending more fluid out of the hose.
Thats the theory anyway. If It goes back up the hose again Ill take a picture.
Does that sound plausible, or is there another answer?