The engine is very clean, many parts look brand new. However when I pulled the intake hose off the turbo, a good amount of oil came out. There is some oil in the turbo and the intake hose, I am trying to figure out what caused this. Could this have been caused by shipping (putting on the pallet, moving the engine around, etc.). I have heard a worn turbo will allow oil into the intake passage way, but I am new the turbo game and am not sure. I checked the turbo it seems to have 0 shaft play. Any help is greatly appreciated.

Thanks,
Craig

Hey guys, I need a little help.

Thanks

It could be the hose connected to the oil separator that connects to the J-pipe (from MAF to turbo). It sometimes allows oil to run down into the intake and it settles at the lowest point which is often the turbo compressor. If the shaft has no play and spins freely, I wouldn't worry about it too much. Just clean it out and try it out...
clay
92 with GTi-R heart.

That is very normal. Blow by. I wouldn't worry as long as the turbo spins freely with limited play.