http://www.dpo.uab.edu/~vwilson/rx7/underhood.MPG

ok what is that coming from? its coming from the turbo area. is it a bad gasket?

 

Its probably some liquid leaking and hitting the turbo, then sizzling and smoking. I have no clue what that liquid might be though.

 

That to me looks a lot like oil smoke, is the oil supply flange clamped onto the CHRA tight enough?
Are there any cracks you can see near it?

 

it smells like oil smoke too. its at home..im at college so i cant check but ill check that when i get home (hopefully next week)

 

i had the same problem with my car...sorta, i dont have a turbo, but i have an s5 engine in my 86 sport, my s5 intake was blown away in a tornado so i had my s4 intake on the s5 engine, it smoked exactly like that, i mean take the turbo out and that was my car, so maybe if youve done some sort of engine swap that could be it, but if thats not it, then i havent got a clue