Turbo giving up?
 

The guy I'm getting my TII from said that the turbo was kinda going out. I've been watching it for smoke etc, but haven't seen any.

However, yesterday when I was driving it, I noticed that I can hear the turbo spooling (I think) a lot louder than it used to, but it's not pulling nearly as hard. Is this a good sign that it's time to put the new turbo on, or is it probably something else?

i dont really know too much about truobleshooting turbos and what not, but it sounds to me like you'r loosing pressure due to a blown seal on the turbo. its probly easier to spin now that the seal is gone, and therefore spins faster.. causing the louder spooling..idk.. just a thought.. correct me if im wrong..

do you have a boost gauge? what does it read?

also, pull the inlet duct off the turbo (when the car's off) and grab the compressor wheel with your fingers and gently try to move it up and down and left to right. if it moves at all then you have shaft play and that could be the cause of the sounds.

either way it sounds like you need a rebuilt turbo, but it could possibly just be a boost leak.