20v I5 Implosion

[alan page]

Help,

I have a '94 S4 with what looks like a serious problem. Suddenly last
night it seemed to be running on four cylinders and by the time I got
home 15 minutes later, I had a lot of white/grey smoke coming out and
1/3 the typical power.

On looking things over today I've got oil all over the rear of the
engine, although no obvious leak. There's air puffing out of the rear
of the coil pack cover (from the little hole where the wiring goes in);
sort of the puffing you'd expect from the crankcase ventilation, which
has NONE coming out.

I removed the coil pack cover and one of spark plug connectors is
completely destroyed, with little bits all over (picture:
http://www.flaminglogos.com/audi/coilpacks.jpg). Three of the cylinders
where the spark plugs are usually visible are half full of engine oil
(picture: http://www.flaminglogos.com/audi/sparkplugs.jpg). Upon
cranking the engine, the first spark plug shot out of its cylinder and
hit the underside of the hood, and the second one showed bubbles in the
little oil covering it.

I realize that none of this is good, and it's probably going to cost a
fortune to fix it, but I'm having trouble trying to piece together
what's going on. The spark plugs and coil packs were replaced at the
120K service 11 months ago. Even if that was done improperly, where's
all the oil coming from?

Any ideas welcome.
Thanks,

Alan Page
Sandy Hook, CT
'94 S4
'90 80q