I think it's the turbo for sure now... I removed the compressor housing and sprayed some lube on the bear from the oil drain hole(bearing was black,still spins), as soon as I moved the compressor wheel I noticed about 1-2 mm of shaft play side to side and the lub started pouring out the compressor seals. I figure if that much oil was in my compressor housing it would smoke like a beast. There's no in/out play on the turbo so I'm guessing just replace the seals? the turbo spins freely.

 

damn... i got the same problem.. oils spitting out of the valve cover breather fitting thing...

I have the car running and i cover the hole with my finger and wait a few seconds then let it go and it just shoots a ---- load of pressurized smoke out. When i drive normally it doesnt smoke that bad... but once boost kicks in... it starts to spew it out of the tailpipe too... that ***** emberassing... i think im going to have to slap a new headgasket on the old Z6 and run that till i get all my new internals and just build this bitch up cause it needs it more than the other motor

 

not sure this is true; I just have a little breather filter on mine, and it's bone dry.