What size is the drain on the turbo and how much do you restrict it?
While I agree the drain should be vertical if possible.....I put my drain into the side cover as well - horizontal. Haven't done more than some test kms yet, but no smoke from oil. Did some test kms without an exhaust as well and no sign of oil on the turbine outlet. My drain is much bigger than everyone else's though. 5/8" barb on turbo, 5/8" hose on a nice round bend to the horizontal and the barb I brazed to the side cover is a 5/8" barb with a minimum 1/2" internal. Some people are running 1/4" drains, so mine is 2 times bigger in diameter. More in cross-section/area.

