If everything else looks ok I'd go ahead and replace the oil seals.

 

I lost a lot of oil when my turbo oil drain got kinked. It all came out of the exhaust like what is happening here. Might be worth checking out.

 

I didn't even think about the drain being kinked.

 

Usually it can't be because it's solid in stock form. When I changed my turbo out, I couldn't get the stock one to work with the turbo, so the guy I talked to at the Cummins dealer told me to use some heater hose. Well, after that failed, I got some high temp hydraulic hose and never looked back. It took me a while to finally figure out what was causing it. The drain could still be clogged up with something though.

 

I replaced the turbo today with the right one, hx-35, and it still runs the same. I did notice that between 15-1800 rpm it has a popping noise through the intake like a bad valve or something.

 

 

Well I found out that the p7100 has something seized up in it. The popping I keep hearing is actually from the exhaust and I don't have fuel coming out of #3 on the pump. Told the owner and he's trading it in on a '93 D350 ext cab. Apparently this truck has been one thing after another since he got it.

 

I've been there before. Had an 82' K5 blazer that was a money pit from the day I bought it. Depending on what he paid for the truck it might be worth it to have the pump checked out.