So i just got my T II motor in, the car starts up and runs fine however, shortly after i started getting smoke coming out of the exhaust. and it wouldn't go away. i took the exhaust and turbo off, the turbo had a little oil in the exhaust side of the turbo but seemed fine. the exhaust ports on the engine had no oil what so ever in or on them. I started to notice the oil on the outside of the turbo that seemed to be seeping out from the inside. I then assumed that the turbo was no good and replaced it with another one i had. The car ran fine for a bit but then the smoke came back.

 

Check all the lines around the turbo. Common leaks areas are a crack in the oil feed, or a crack/hole in the oil drain. There are several gaskets involved, one on the feed flange, one on the return flange, one at the end of the return pipe, and finally one between the little stub pipe and the front cover.

Pull the spark plugs and check for signs of burning oil.

 

I checked all the lines but none of them are leaking. The oil seems to be coming from the exhaust side of the turbo and geting into the exhaust system. I check the exhaust ports on the engine and there is no oil in them or coming out of them.

 

Sounds like it may be leaking internally then. In that case, the turbo will need to be rebuilt or replaced.