What was found
EWR FLIGHT 3068 THE CREW REPORTED A LAV SMOKE INDICATION AFTER TAKEOFF. THE AIRCRAFT RETURNED TO EWR AND LANDED WITHOUT FURTHER INCIDENT. MAINTENANCE INSPECTED AND RAN BOTH ENGINES. THE NR 1 ENGINE WAS FOUND TO BE THE CAUSE OF THE LAV INDICATION AND SMOKEY ODOR. THE NR 1 ENGINE WAS REPLACED AND OPERATIONAL CHECKS WERE GOOD. THE ROOT CAUSE OF THE HAZE IN THE CABIN WAS THE NR 4 CARBON SEAL.THE SEGMENTS AND THE TEFLON SEAL NO LONGER RETAINED OIL FROM SEEPING OUT TO THE TIP OF THE FRONT SUMP HOUSING AND INTO THE HP COMPRESSOR"S AIR STREAM.