Have a look inside the input of the intercooler, if it is really wet with oil then the there are only two places that the oil can come from.Question though - would a blown turbo (which was the initial problem or so I thought) burn oil so much that once it made its way back into the engine, it would coke up the pistons like that????
If the turbo's bearing seals are crook, then IMHO the engine would have got a large dose of oil all of a sudden and could have run away, feeding on it's sump oil.
I'd test your turbo by giving the end of the shaft a gentle wiggle with your fingers, there could be a very slight or no movement side to side across the bearing's, but there should be definitely no end float fore and aft at all.
A link to a good turbo check.
http://www.theturboforums.com/conten...charging-guide
Most likely culprit is oil mist from the engine breather and given that you have found a crook oil ring and the others stuck, that would be the source of the sump pressurising and oil making it's way into the air input.
For all this to happen what is the history of that engine?
I would question the choice of oil type, if a cheap oil that is meant for petrol motors has been used and/or non regular oil changes with filter, means that combustion products can stay inside the engine building up as sludge and not get dumped out at the oil change interval. Make sure that it's detergent oil that's meant for diesel and change between every 7,000 to 10,000 kilometres.
I change the oil ( Castrol RX Super ) and filter in my 300TDi's at every 5,000 kilometres as they do a lot of short runs and the inside of my engines are spotless with no sludge at all, the kilometres on 'Daisy' is now at 530,000 and is running as good as .
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