I am finding black soot on my inner fender well on the passenger side of the car.I suspect its somehow coming from the Turbo but i can't find where.
What mite cause this?

Turbo itself not nearly as likely a candidate as the header pipe right behind it. The corrugated accordian tube section of the pipe can crack and spring exhaust leaks. With the engine idling (and needless to say, the car properly secured) run your hand along the pipe from underneath. You should be able to feel the leak. Its a bolt on part, around $60 or so. Good luck.

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Tjohn

82 300 SD
77 450 SL (gone)