Thanks to all who are posting. After David posted, I went out and looked at the filter I have and the valve. David is %100 correct. The operation of the valve is such that to let oil back to motor, it needs to be installed with spring totally inside it's cavity. That is, this way.
http://6066gmcclub.com/forum/album.php?albumid=63
If we ever loose the pic: it is installed with the small hole towards the motor. Entire valve stays inside it's cavity. All as David said AND as the Album owner shows. Kudos to him/her.
We need to purge any and all info showing otherwise, such as this:
http://6066gmcclub.com/forum/album.p...pictureid=2147
This is the "Go-To" site for V6, we can't give out bad info. It would only ruin a motor if the filter got extremely clogged and valve was backwards. When valve is installed correctly and operating, dirty oil is being returned to motor. But dirty oil is better than no oil.
I realize it was not the intention to give bad info, I myself was sure it was correct because I received a filter with it installed that way, a EBAY filter shows it that way and the album shows it that way. It fell out and everybody put it back the wrong way. "It's like a box of chocolate."