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The majority of the time when the turbo seals go out you shouldn't really see smoke under boost, but you will see it after you let off after boosting. If its blowing smoke out while you are boosting maybe you are just runnign really rich. My #2 turbo seal went out on me a while back and I had to swap them out. You will know for sure if its bad when you actually take them apart because the turbine blades will be coated black vs. a redish orange if its good. Like HomeRocks said a little bit of oil in the intercooler piping is pretty normal so that not really a good way to check.

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