I have a 87 745 Turbo wagon, just bought it 2 weeks ago with a seized turbo. Had a known turbo shop rebuild the turbo, before the rebuild the car had NO POWER, but it ran good enough to drive home 20 miles from point of purchase with no problems or ANY type of smoke from the exhaust.

AFTER the rebuild, we changed oil, filters( oil & Air ) plug, wires and cap.
Start the car it runs good, making boost. Now we let the car sit idling @ about 800 RPM in park. Then we see smoke Blue smoke growing from the exhaust. Then look under the hood and see the the dipstick was lifted up from the dipstick tube about 2 inches and there's oil coming from the filler cap on the cam cover.
The motor shows 173,000 on the odometer, the shop that did the turbo says that the rings in the motor are GONE, this is why the BLUE smoke is coming and why the dipstick lifted out of position. Now that the motor is getting boost it's causing havoc in the cyliders...The motor was being over-worked when the turbo seized...Could this be true or is it something else gone wrong with the turbo rebuild. BEFORE THE REBUILD NO SMOKE WHAT SO EVER...AFTER THE REBUILD MASSIVE SMOKING !!!!
Please help...the car is in GREAT shape...Do I go for another motor or recheck the TURBO???

Thanks In Advance

Tariq
Massapequa NY