kraneous

I drive a 92 JDM FD twin sequential and I have a question about the charge relief valve. I got a smoke test done while hunting down a vacuum leak (because of a slight 'surge' that I get intermittently at low rpm) and I found that the CRV was letting out a lot of smoke. It looks like the hoses are tight around it so the only thing I can assume is that the CRV itself has somehow failed. I don't know a lot about how the CRV operates but I know that it regulates the secondary boost (I think). Basically I have 2 questions...
1) Is it common (or even possible) for a CRV to fail?
2) Could a faulty CRV be what is causing the slight surge I get at low rpm?

Any advice would be hugely appreciated!!