the woes of a stock turbo thats gone 198xxx

[antslegggy]

hey guys, so, I have noticed as of late, my turbo is getting rather hot, and if you romp on it there is the smell of burning oil and smoke rising from the turbo side of the engine bay.
after a drive home, roughly 15 miles, mainly freeway, I got home and there was smoke coming up from the turbo side of the engine. I know its not the head gasket seals because they were changed last year and I can still see them from looking down and the engine.
But when I stuck my face down by the turbo ( ya not the brightest crayon in the tool shed) it was really hot. i was trying to locate the source of the burning oil. looking down I cant see any drippings of oil from my parking spot or on the exhaust manifold. But there IS smoke coming from that side of the engine.
Is it time to just bite the bullet and get a new turbo. (by new I mean new to the car not a brand spankin new turbo)
and some back round info,
cars in great shape, engine is strong. auto trans still shifts like butter.
side bar. Im 22 and love this car to death. a little more speed wouldnt be the worst thing ever.
considering the td04-05 with top mount intercooler. but the budget on this isnt the greatest. i dont have spare arms and legs and first born children to throw at a car as old as I am.
My understanding is that the vf-39 is currently on the car ( i think im not 100% on that) and that doesnt require an intercooler to operate. but if I bump up to the wrx turbo & intercooler are there other upgrades that need to take place as well ie fuel pump, injectors, intake
currently running a desnorkus'd intake with a k&n filter on this but other than that everythings stock. ( stole a jecs fuel pump off of another legacy like mine in a junkyard. new fuel filter as well.
thanks in advance.

[antslegggy]

just kidding not a vf-39.
its the stock turbo on the 2.2 turbo legacy
thought about that right after i posted that and knew it sounded funny.

[antslegggy]

Vf-11

[Alphius]

I would check for any oil leaking from hoses or fittings in that area first. The up-pipe is right below that head, so if the rear cam cover plate is leaking, or the valve cover gaskets, or any turbo oil fittings the oil will leak right onto the exhaust there and burn.

[Legacy777]

I agree with Alphius, check for oil leaks first. External smoke isn't really an indicator the turbo is failing. If you're seeing smoke out the tail pipe, that might be a little more convincing.

I'd suggest using some engine degreaser to clean the engine bay up as good as you can so that you will see any new oil leaks. The valve cover gasket & grommets are common leak points as well as the fittings on the rear of the passenger head.