I have a lot of oil drips from bottom of oil pan, etc. Appears to be coming from where air intake pipe connects to turbo. When I pulled it apart there was oil in the black intake pipe. Does NOT seem the return line is leaking per the Bay 13 problem/fix.

Is it possible to leak through the turbo like this and what does it mean? Some seal inside turbo is bad or something?

Any help appreciated. My driveway looks terrible!!

By 'intake pipe' I assume you mean the compressor-side duct to the intercooler? Oil here is absolutely normal, and over the years and miles you can expect an accumulation of oil all along this line and some in the bottom of the intercooler.

The oil seals in the turbo are primitive metal-to-metal affairs, and minute amounts of oil always escape. At the exhaust side of the turbo, whatever isn't burned up in the exhaust will carbonize on the impeller blades and the exhaust system walls. On the compressor side, as you can see, it just slowly collects.


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David
  Our long national nightmare of peace and prosperity is finally over - The Onion
98 S70 T5SE // Black, misc mods (mostly lighting), red calipers
92 940GLE // Hella Micro DE foglights

A bit of oil is normal. Typically it accumulates in the
intercooler and drips out of the intercooler (which has a small
hole drilled in the bottom of it). Most people find an oil
leak near the front of the car if the intercooler leaks too
much oil (driving the car harder would have less leaking oil
since more of it would be burned in the intake path).

It should not leak at that spot, though. Tighten up the hoses
a bit and see if that helps.

They all do that eventually and it's not really a problem. Just tighten the clamp and degrease the area, should then be OK.

My turbo was leaking oil at the same location, it was not marking the driveway.

I was told that they make a new seal out of a piece of "bike inner tube" this is motorcycle inner tube I suspect.

I would clean the inside of the offending tube and then seal the connection.

I do not have any experience with an 850, but I can tell you that there seems to be plenty of oil in the intake syetem of my '90 740 turbo, and even some oil in the intake system of our '88 740 NA. Both pass emissions testing.

Have you done a search?
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3 8s & 2 7s 740,000 miles total