I've got an 87 T2. I'm driving one day and my engine loses a lot of power and is puffing out oil smoke. When I remove the turbo and manifold, I noticed that the turbine shaft has broken and the turbine wheel is just sitting in the housing. That explains why I had no power and was smoking. I put my finger inside both housings and there's no oil or coolant and no scratches or grooves, and all the apex seals are intact and appear to move normally. Now my question, should I slap another turbo on there or should I pull the motor apart and look at it???

 

You should get a compression test.