My experience with shaft play is minimal. Meaning I touched this one and one other. It feels about the same as the last time I touched it, maybe 3 years ago. Spins freely, and sounds completely normal.
Turbo was purchased used. Previous owner said he ran it (I forget) maybe 5-15k miles at 15psi. I have kept it at wastegate level of maybe 7psi.
What kills me is the sheer coincidence of the replacement of the motor mounts. Simply jacked up the engine and replaced. Nothing else was touched.
Maybe the oil drain got kinked in the process of changing the motor mounts, caused a back up of oil that blew a seal? Whatever the case is, looks like you blew the oil seal thats located behind the compressor. Its a small compression C-clip type that sits in a groove on the shaft. Maybe you can just replace that part since the shaft play isn't too bad....I've never worked on a ball bearing turbo before.
Maybe the oil drain got kinked in the process of changing the motor mounts, caused a back up of oil that blew a seal?
Thats what I was thinking. Also if you've got almost a quart of oil in the pipes and the turbo will fill a can in less than a minute. Make sure you check your oil level before you go revving the motor for an hour.
I had similar problems on an old journal bearing turbo on my VW. A restricter on the oil feed fixed it after a few days of street driving. Do what everyone else did and go ahead and get a .032" oil feed fitting.
I've mentioned this in other threads, but I once overfilled my oil (accidentally) enough to cover the return fitting in the oilpan, and mine did the same thing (GT2560R). The problem disappeared when I took the oil down to the proper level. I started wondering if this sort of thing would happen in a long continuous right turn, and put in a restrictor anyway.
The thing about these turbos is that the seals are bad from the factory, or they are good. There really is no in between. If the turbo still makes boost, chances are the turbo is just fine and you need to look elsewhere for the problem.
That said, seals can "temporarily not work". Something is causing excessive oil flow or pressure for there to be that much oil. When there is excessive flow and pressure, the oil seals will leak. It is sort of a built in fail safe for the turbo. Get rid of the excessive flow or pressure, and the seals will return to normal operation. If this is a sudden problem, I would check the oil drain line. Make sure it is not kinked or blocked internally. After that, make sure an oil catch can has a vent hole. Make sure your PCV valve is working. Then I would install an oil restrictor. If none of that fixes your problems, I would start on the engine next. A Leak down test would be in order.
My vote would be blown oil seal. Like others have said maybe when you did the mounts the drain got kinked and the internal lining is still closed inside the line. Put a restrictor in it and see if it helps and if you did kill the turbo 30K is not bad at all. I would be happy to get 30K out of a turbo.
I have a hard time imagining that unless the vent tube at the side of the cam cover is completely blocked off (or connected to the pressurized side of the intake) he'd be generating more than a few tenths of a PSI inside the crankcase relative to atmo, regardless of what the rings look like.
Started the car. A little bit of oil came out of the compressor side, then completely stopped after about 5 minutes. It seemed like there was less smoke from the exhaust, but there was still quite a bit.
Took the car out for a spin. After two boosted runs, the smoke disappeared!!!!