First of all I would like to thank everybody that has given his input on my problem, that's remarkable :-) Grazie !!!!
The smoke is coming out from the tailpipe, and is white in color. There are no external leaks in the turbo/exhaust area.

Today I have drained the Oil and the coolant:
OIL> perfect, right quantity, right color
COOLANT> too dark, too oily

I suspect that the problem might reside in the turbo, in the form of an internal leak, since outside nothing is visible.

UPDATE:
I have taken the turbo out from the car and there are oil streaks inside the exhaust turbine housing. I think that we have found the problem.
Now I only have to find the most reliable repair/rebuilt unit on the market, and from what I have read around, it seems that the Erickson Industries rebuilt is a very reliable one. FCPGrot... wants $550 for it. That is not too bad if the unit is as reliable as the stock Garret.

Let's wait to have the turbo installed back and let's see if I'm headed for a more serious head/ring job...

If it's constant and doesn't change with RPM's, perhaps something's dripping onto hot exhaust parts?? Could even be windshield washer fluid. Maybe I didn't read it correctly, but did you say exactly where the smoke is coming from?

David,

Have you checked the gasket on the turbo oil return tube into the engine block. This is a round o-ring type gasket that press fits into the engine block. If that gasket leaks, it drips oil onto the exhaust manifold and you'll have that constant nightclub fog effect under the hood. My '93 944t had this problem. It's a cheap easy repair that's well described in the FAQ.

Hope this helps,



Mike

I have white smoke too, not much but still its not right.

Sorry I can't help

Are you loosing any fluids anywhere?
Generally, white=water, black=fuel, blue=oil.
--
-------Robert, '93 940t, '90 240 wagon, '84 240 diesel (she's sick) , '80 245 diesel, '82 Mercedes 300SD

Open a night club! ;-) Paul
--
'96 965, longtime 240 owner and 200K mile member