If there's considerable liquid oil dripping out the tail pipes, it has to be a bad turbo seal or bearing into the turbine housing. That much oil in a combustion chamber would cause hydrolock.

If possible, remove the pipe from the exhaust manifold collector to the turbo. The nuts are easy enough to get to. It might take a good whack to unset the pipe. See how much liquid oil is coating the pipe. I expect little to none if my turbo seal hypothesis is correct.

The pipe could be 10" in diameter if your car still has the trap oxidizer. Else it'll be closer to 4" in diameter.

Sixto
87 300D

By the way I did do the cold hard hose test all is OK I can squeeze with ease.

Dose anyone have a pic of the pipe from the exhaust manifold collector to the turbo? So I can remove it and check for oil. I know for sure that the down pipe from the turbo is coated with oil.

This picture from Dave's collection should help though it doesn't show the engine -

http://www.w124performance.com/images/OM603_exhaust/trap_oxidizer.jpg

Should be easy enough to find something that big in the engine bay.

Sixto
87 300D

My father is dealing with this problem right now in his 87 300SDL(603.960). It started smoking like a battleship, we checked the turbo, when we pulled the turbo thinking that was the problem, we found oil was entering the turbo from the exhaust side. We then seperated the exhaust manifold from the head and found that oil was coming from #2 cylinder. Turned out to be a blown valve seal(exhaust valve). At 247,000 miles he decided to have a full valve job done, and is putting it back together right now.

My dad is a retired aircraft mechanic, and I've been wrenching for over 35 years myself, niether of us has ever seen an engine run while pumping that much oil through the combustion system. Other than smoking the car ran fine, only slightly down on power. Hope that helps. I do have a question I'd like to add about replacement timing chains, but I think I'll start a new thread, if anyone reading this has experience with replacement chains I'd appreciate your input.

My factory crate engine came with a -22 head. (That is the casting number. The orderable part number is 603-010-96-20 for the final revision of this head as explained above. If yours says 20, it is the next to the last revision but not necessarily in need of replacement. But read below.)

My engine which was installed a little over 4 years ago smoked a bit from the beginning. Not like a train. More like a steady wisp which was most visible when stopped on an off ramp with a tail wind. Power was down considerably from the prior engine but still very drivable. My indy-who installed it-kept notifying me that there seemed to be too much oil in the intake and that he suspected the turbo which was also new at the time of the engine installation. That did not fix the issue. The injectors were rebuilt with new nozzles added. Later, the IP was changed but the problem remained.

In November of last year-just prior to the warranty on the engine ran out-we took the car to the dealer from whom the engine had been purchased (the turbo and the IP also came from that source). We told them about the smoke and the oil. They did a compression test (500#) and a leakdown test and called it good-and forgot to put the gasket in the engine end of the crossover tube. The oil and smoke issues remained and we took it back and claimed that they had missed what we pointed out just at the end of the warranty validity. This time they took off the head and found a crack near the #5 pre-chamber. (Dave says that this is the first problem of this type that he has seen with a -22 head.) The dealer also said that there was evidence of some object beating the surface in cylinders 1-2-3 with increasing severity in 3. This was not on the valve surfaces or the top of the piston. He had no idea what caused it however both the crack and the foriegn object may have been in the engine from the start.

The dealer installed the new head and, though I have not yet gotten the car back or even seen it yet, I have been told that the car runs perfectly with normal power. The reason for the delay is that the IP has a leak at the bottom and needs a new seal-also under warranty. Only when that is completed can I determine whether both the smoke and oil in the intake issues have been addressed completely.

If you have a -20 head, it is a certainty that the head was replaced at some time (which also makes it unlikely that you have the fat, football shaped ceramic soot collector) indicating a prior problem. That causes me to remind you to check what is probably the most frequent cause of overheating-the 212 switch at the front of the engine which turns on the aux fan when the coolant get hotter than the normal fan can dissipate. Good luck.

__________________
87 300D 265Kmi
Factory rebuilt crate 603.96x engine at 200K

When I took the car in for a warranty claim on the new engine, the dealer service manager made a big deal of whether the engine had ever been run on "biodiesel". I do not know if he meant B5 or B100 but it was clear that if it had been used, then no warranty coverage would be available. I believe-but cannot prove-that ULSD caused a bit of leakage in the IP seals but certainly not the crack in the head.

__________________
87 300D 265Kmi
Factory rebuilt crate 603.96x engine at 200K

Took off the exhaust and look at the oil out of the ports is that OK

Well it looks like all the cylinders are processing the oil. Going to have to check the turbo for bearing leakage now. Sixto is right.
You can rebuild the turbo yourself I understand. New bearing cartridge and seals. Methods in archives.
It's suprising engine did not try to run up with that much excess oil in the cylinders.

So do you think it's the turbo or do I need to remove the head?

Since it is not isolated to one cylinder I would expect the turbo. There should be evidence of a heavy leakage going into the intake from the tubo. You want to verify this before rebuilding the tubo. I think it will be there myself.
Cheaper and easier than having a bad head gasket if thats it. Especially if you repair it yourself. Those exhaust ports all look very wet to me. Pretty good pictures by you help a lot as well.

I didn't notice oil going into the intake it didn't look wet? Also I pulled off the injector on the number 1 and it was wet with OIL. What type of turbo dose this car have 1987 300 TD here is the casting number 5326 101 5294

The turbo is not the problem here. The oil is pouring out of the exhaust in all cylinders. Any oil from the turbo would be burned in the combustion chambers.

The problem is exhaust valve seals or guides. All of them are shot.