[Biturbos4] Unfortunately, I now belong to the turbo failure club also, need advice!

[be_larson at access-4-free.com]

Hello, I am hoping this list can help me with some advice
regarding a problem with my car.

2001 a6 2.7tq, 6 speed sport package, build date 10/2000. 
65k miles, never chipped.  Bought 2 months ago at 62k, was
previously a AOA lease car.  BTW, I am in Twin Cities MN.

Yesterday night, after a 5 minute warm up (-15 degrees F),
on a 15 minute drive home, it started smoking excessively
out the tailpipes, oil smell, not coolant.  It went through
approx 1 quart in 15 miles!  I have not dug into the car,
but I am pretty sure I lost a turbo oil seal, no funny
noises were heard, just lots of smoke.  

I have some questions for you guys, and I hope you do not
mind giving me advice even though this is not a S4 (same
drivetrain and brakes though).

Has anyone gotten an Audi dealer to cover turbo replacement
under an emissions warranty, or goodwill at 60-70k miles?  
Are there upgrades I should do if I end up fixing this
myself, ie new oil lines and such?  
Do I need to pull the motor to put a turbo in this car, I
have access to a hoist so I can get pretty good access from
underneath?

I look forward to hearing any advice you might have about
this issue.
Thanks,
Brian