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Heavy Smoke and smell from Exhaust ?

My Toyota avensis 03 plate has recently started to billow out cloudy smoke when just turning over or revving. It is that heavy it is undrivable. I took off the pipes at the turbo expecting to find oil but nothing. The oil is low but it could have been like that previous as hasnt been checked in a while. When it happened i was sure i heard a grind noise hence why i thought maybe the turbo or a bearing had gone. I also thought the EGR Valve had siezed and gave this ( or what i thought was this) a tap to try and loosen it. I do not want to end up guessing and changing parts unnecesary. There is liquid coming out of exhaust also which i thought to be fuel but then it could just be water as it had so many bits of crap from exhaust in it. Any Help would be greatly appreciated here as i need my car to work.
Graham Hunstone, December 2009
Does anyone know how big a job it is to replace the turbo on my toyota avensis 03 d4d?

Graham, December 2009
John,

Thank You thats what we expected but i was told if i took the pipes off that go into turbo it should have oil in it but it didnt really thats what made me think otherwise?.

Are you confident mate?

Cheers

Graham

Graham, December 2009
Complete turbo failure, Graham.

John, December 2009
link Click here to see other fixes for Toyota Avensis.