While I agree with Robin on the turbo part, a badly leaking EBP actuator in the pedistal could easily spit out that much oil in a short amount of time, and it would run down the back of the motor as described.

If you feel the turbo is toast, then rebuild it yourself. Here are the directions, takes about 3-4 hrs icluding removal and reinstallation .
Welcome to BDrummonds Van Turbo Rebuild Web Page

 

It was leaking oil into the intake and also pouring it all over the top of the motor. Thats where the big clouds of blue smoke were coming from.

 

Thanks for the info.

Ford has not removed the turbo yet so they can't tell me what part caused the failure or what all is damaged. Not even sure if it rebuildable.

I'm not afraid to do some wrenching on the turbo, I am just leary of it being rebuildable. Once something on a turbo fails it seems that something tears up the housing pretty quick. At least that was my experience with cummins tubos. I had a bearing fail in one of them and the whole tubine wheel turned to dust spining against the housing.

 

Its definately rebuildable. Since Garrets are modular turbos each individual piece that I showed in my link can be purchased seperatly. I actually had to buy a new compressor backplate because the original one in the pic had some stress fractures in it. I got the new backplate from Beans, and if I remember it wasnt too expensive ($70 or less). Unless you heard a major screeching or metal on metal noise, I would bet the shaft and wheel are good, and just a seal is gone.

 

Talked to Clay, real nice guy and could help even me and my lack of PSD knowledge. Ordered a rebuild kit and told Ford to get the turbo off for me. Hopefully the thing isn't trashed. I will start a new thread when I start the rebuild so I can show you what happened and ask for help if I run into any problems.

Thanks for the rebuild link BD, going to be using it for sure now.