81 5k Turbo Probs

[Jim Jordan <superba@ix.netcom.com>]

Hi to All,

I have an urgent problem that I must answer by 0000GMT on 29 April 1997.  I
have an 81 5k turbo which I bought new, and it now has 279,xxx miles on it.
Audi replaced the turbo at about 67k, and it ran well until recently when I
noticed a lack of boost.  I went over it carefully but could find no cause
other than the turbo or the cat converter.  I took it to an Audi workshop,
and they said the turbo was defective.  I called around, found a rebuilt
turbo, and with much trepidation installed it.  When I tested it, much to my
chagrin, it did't fix the problem.  I went back through the checks again and
pin pointed the cat converter, but when I tried to remove it to check it
physically, the bolts, which had never been removed were totally rusted
frozen.  I had no replacements so I took the car to the Audi workshop again
and had them remove the bolts and repair the cat converter, and the turbo
worked fine.  After using it for 1 week, 2 days ago on my way home from a
job I'm doing, smoke began coming out the tail pipe, blue smoke and a fair
amount of it.  It's smoke from oil and it's not valve stem seals, for they
smoke only after the car sits for a time, smoke, then they clear and don't
smoke again until the car sits for a time.  I called the supplier of the
turbo and he suggested that my PCV valve might be plugged or that the oil
level might be too high.  Even though I didn't believe any of these was the
culprit, I checked the oil and it's down about a pint, after all I smoked
the countryside with it, and I plugged the PCV pipe with a wine cork.
Driving it made it smoke worse, so bad, in fact, that I was going to a
supermarket but was so ashamed of the smoke that I turned around and came
back home.

This problem is dominating my thoughts and my dilemma is what to do.  For
example, I could take it to the Audi workshop and they'll replace the turbo
complete for $1,000 USD, or they'll install a different, owner furnished,
one for 4.5 hours labor, about $300 USD.  I could remove the turbo and ship
it back to the supplier and let him take his own good time about returning
it, renting a car in the meantime.  Or, I could order the cartridge
impeller/compressor assembly and replace it myself.  The turbo housing is
still quite new having had less than 500 easy miles put on it;  I used the
boost rarely just to see if it's still there.

If it hasn't occurred to the reader yet, I'm not flush with cash and would
like to do this in the most economical, yet efficient, manner.  Also, I need
to get back to concentrating on my work for a change.

Suggestions from clear thinkers are strongly solicited.

TIA...

Cheers!