I asked this in another thread but I figured I would use a more direct title. There is oil in the rubber hose attaching the BOV to the flange, is there any good reason this should be or is that a sign of a bad turbo?

Ben

 

Turbos will leak oil slightly. It's perfectly normal to find a slight film on the inside of the post-turbo ducting or inside the intercooler. Of course this film reduces the efficiency of the intercooler slightly, but its nothing that a little carb cleaner won't fix. If there is a large amount of oil in your BOV, I'd clean it out and see if it builds back up again in the course of several weeks. If there isn't a noticeable amount of oil, then you might be in the clear. However, if it gunks itself back up within a short period of time, it may be prudent to replace the turbo.