What in the turbo is made of copper? I can't think of anything other than washers, which would not just randomly disintegrate into the oil. Your metal is most likely coming from something other than the turbo. Was the engine ran for a long period (10 minutes or more) with no or low oil?
The turbo install on the b7 is fairly straightforward. Make sure to get all the sealing washers, studs/hardware, and exhaust manifold and cat gaskets. The turbo and manifold are one-piece on the b7. Entire job can be done in less than a few hours with air tools, or if you have a good selection of hand tools. Technical difficulty I would rate it at about 4.5-6 depending on how many PITA bolts/nuts you find. Try not to break anything. The studs on the turbo like to break because the locknuts get siezed on. disconnect the cat at both sides (turbo and midpipe) and slide it back (does not need to be fully removed). remove the brace (probably the most frustrating part). Then disconnect all the air, fluid and electrical connections. Unbolt all the top nuts at the manifold and pull it up while tilting the bottom towards the oil pan. Make sure not to touch the hot lead on the starter or better yet d/c your neg terminal beforehand. Like I said, pretty straight forward. Best of luck!
And most failed turbo's either puke oil into the exhaust causing a smoke machine, or suck something into the impellor (debris or the locknut on the impeller itself). I always hear people talk about the feared dentist drill noise, but from my experience, it is a very rare failure. Some say low boost is a tell tale sign, but this is only if the wastegate is loose. I believe there is actually a TSB for this on the b7 or b8. Usually, low boost is due to a vacuum/charge-air leak. Hope this helps!
Bookmarks