My replacement oil pan and gasket arrived Friday, hooray! The OEM is seeping oil and it would be nice to put on a nice and clean new one. I placed the pan down on the gasket and found they are not a match. Both parts are listed as compatible with a 1985 300TD. So at least one of them is wrong... I'm betting the pan.
After cleaning up the top area of the turbo and manifold, I started up VIN to see how it was running after replacing all of the fuel return lines with new Mercedes hose (who knew they were tan to start?) as well as the EGR delete and Trap block off. The car seemed to run really nicely! Maybe the best yet. Could be in my head, but I feel like the car revs and feels smoother even in idle. Also, for more work room I had the intake hose off so the turbo was sucking air freely (garaged). Sounded pretty good! I have a spare K&N cone filter and am tempted o build a short ram intake to test out the noise as well as create more room in the engine bay. Behind the passenger headlight seems like a suitably dry location?
Anyway, after running the engine for a bit I gave it some revs a few times to get the turbo sucking air more.
This was the immediate result and I'd like all of your input:

This gap has always seemed large to me, but I'm not sure. I noticed for the first time it actually moves then you increase revs. At anyrate, it's spitting out oil like crazy and seems to be the source of my upper oil leak as well as the culprit for gunking up the EGR.

There seems to be a port before the turbine (is that connected to that aforementioned ARV?) that appears to be leaking oil. I suspect that is then sucked into the turbo and ejected out of the first image. This would explain the leak above, the gunked up EGR and smoke when boosting on the highway - sucking in oil.
If the above is correct, does anyone know what the source of that leak is? Is this a gasket swap or more of a turbo rebuild situation, I'm not too familiar here...