Turboed my 88 Dodge Dakota, problems!!

OK so I got the turbo mounted, exhaust piping ran, boost piping run to the throttle body, oil lines ran.
The setup:
The turbo is remote mounted. I have it under the body of the truck and the exhaust inlet is connected to the exhaust pipe of the truck after the manifolds Y- together. The oil feed line is ran from the oil pressure sender unit hole to the oil feed fiting on the turbo. The oil return is ran from the oil return fitting on the turbo to a fitting on the engine valve cover.

The problem:
Oil is coming out of the O2 housing on the turbo. There is plenty of oil pressure going to the turbo and the oil gets there in no time, also it takes a while for the oil to return to the valve cover. I'm thinking that the oil is building up at the turbo and not being evacuated fast enough due to the long distance it has to go and that it has to flow up against gravity ( as opposed to on the eclipse where oil is pumped to the turbo but is then dumped downward to the pan). I know on the STS remote mount turbo kits they have a small pump that is used to push the oil return back to the engine. I can get a cheap $30 fuel pump from my store to pump the oil back to the engine. Also the truck smokes blue terribly when you let off the gas but under WOT it doesnt smoke a lick.

My questions:
-Did we blow the turbo up, lol?
-Is the oil from the O2 housing dump caused from oil loading up at the turbo and possibly bypassing the bushings?
-Will installing a pump in the oil return help?

Thanks alot.

I would guess that there is no pressure after the turbo is why you can't get oil back to the valve cover since gravity is working against you.

Well, oil gets back to the valve cover but I'm guessing not quick enough. And I'm wondering if that is whats making it smoke and leak oil.

That means oil is probably sitting in the turbo too long and prematurely wearing out the bearings in it.

I need to see pictures of this warlock...make it happen man.

That means oil is probably sitting in the turbo too long and prematurely wearing out the bearings in it.

Im sure that over time this would cause the bearings/bushings to wear out....but I doubt it would do this in the span of the 3 minutes that we ran it.

You never said how long you ran it. If it's slow returning from there it will cause excessive pressure at the turbo feed and work its way past the seals. I shouldn't have said bearings. Maybe 3 minutes is long enough, I don't really know since I can't see how much "a little" is. But i think we identified a problem. On to step 2...

I think I'm going to go ahead and try to find a oil pump, I want to try and perfect this before I give up on it and take it off.

Im betting that oil is building up in the turbo and pushing oil by the seal in the turbo. Once you get the setup fixed it may stop smoking, 3 minutes isin't long but you still might have screwed up the seals. I want PICS....

Damn you, we want pics. PICS OR BUST.