Hi Jon.
Great pic! Very envious!! Re the oil, it's more often than not, the engine breather not the turbo (which is a good thing!!)... This breather usually feeds into the inlet pipe just prior to the turbo somewhere... In engines that are slightly older they can 'breathe' quite heavily, which is often a moist or oily mist. There is something available called a Catch Can (Provident springs to mind), which lots of people put on newer cars and 4x4's to stop just what you are describing. Turbo's might weep a tiny bit of oil, but it's not normal. See if you can find your engine breather pipe (usually between rocker cover or engine side cover and the inlet pipe pre turbo. Remove the end nearest the turbo and run your finger inside. This is where the oil is coming from, and where the catch can needs to go.
Now for the scary bit.. Usually if turbo seals let go it all gets a bit exciting really quickly, as the seal lets go... which then lets neat engine oil into the inlet manifold, which makes the engine rev, which makes the oil pressure climb which in turn pumps more oil into the engine.... You get the picture... Suddenly a fast idle spirals to 3500RPM+, accompanied by lots of white smoke. When it happens, if you are quick and know what it is selecting a high gear and stalling the engine might save it. Google 'Diesel engine runaway' and you'll see some entertaining stuff!