Is this how my turbo should look?
 

Turbo works great sounds even better just wonderi g while my truck is sitting if this is how it should look

It looks pretty dirty. I would try to clean it if you could. You may have a oil seal going out dumping oil into the intake.

Ok thanks man! Ill try my best to clean it! And by seal do you mean the steel hose or which area would i start from to replace things?

The seal between the compressor/turbine. If it leaks oil you run into the chance of having a run away. Plus it traps dirt and junk and wears out your turbo quicker.

Can that be replaced or would i need a new turbo?

You can replace them. Make sure you buy a rebuilt kit from a Holset authorized place. The cheap Chinese kits are junk.