I am assuming that the 6-8 inch small hose coming out of the front of the turbo housing going down the the circular "thingy" is the wastegate hose. The circular thingy looks like it is made of two parts. I have a lot of oil at the bottom of where those two parts meet. The hose itself is clean, and where it connects is also clean. Everything south of that is drenched in oil. My car does have blow-by...a lot of it. The oil drip is definitely originating from the described location and not the airfilter housing.
Why is the oil there? Is it supposed to be? Where is it supposed to be going (please don't say my drive way) What does this mean? Turbo is bad?

Thanks

82 300TD