I think I may have found my oil leak. It appears to me that oil is leaking from the turbo itself (inner seals?). I am seriously contemplating removing it and having it refurbished(any suggestions on who is the best and fastest turn around). After removing intake hoses and looking at first blade it looks good and spins but there was some oil in hoses. Now once everything is back together and engine is started I noticed either exhaust or burning oil venting from around the turbo. after closer exam it looks like exhaust that is evenly venting from where the turbo and exhuast manifold join at engine block.Is there a gasket there, will driving the car chance any sever damage to the engine or turbo?
Also I recently replaced exhaust system and am noticing considerable water coming out of tailpipe. Unfortunately I tend to do more short distance driving than long, could it be the engine is not warming enough?

Any advice would be much appreciated I have been experiencing this oil problem for several months but had not worried because of what little driving I do. Now I am starting to worry that I may be prematurely taking away from the performance and longevity of the car.