Got a bunch of stuff this week to add a turbo to my N/A 1.6 (Thanks ilikevwdiesel!!!) any suggestions on what needs to be cleaned or rebuilt before installation.
1) I know almost nothing about turbos

It turns when I put my fingers down on the blades but other than that I'm clueless. I hear people talking about "play" and oil leaking into turbo, but I have no clue how to check.
2) The intake and exhaust manifolds are in normal shape(typical surface rust) does it help to clean them up or is it only for looks. Should I clean out the exhaust manifold ports with a dremel, or is it alot of work for an inexperienced guy with small results to be gained?
3) Do I need to buy new gaskets for all parts( valve cover is obvious, but what about others?)
"Play" in a turbo refers to any shaft movement that is not rotary. Up and down movement would be radial play, in and out movement would be axial play. A few thou of play is "normal" but not ideal.
I'd soak the manifolds in hot, soapy water and then pressure wash them. Porting is good but it depends what you're looking for and your interest level.
I'd replace all gaskets that are disturbed. You might get away with RTV but I wouldn't. Wire wheel every thread and retap every hole that you can. If the stovers (locking nuts) are loose, re-stove or replace them.
Good luck. Also fill the turbo's oil inlet with oil before you fire it up. Or hold the wheel for a bit.
Thanks for the info! The turbo doesn't seem to have any play, but it rotates when i push it. Not sure how easy it is supposed to turn.
Will diesel work as a cleaner? Has anyone used it? Will it hurt anything? What about using gasoline?
You need new intake gasket, exhaust gaskets, oil filter stand gasket. Plus the vavle cover you already mentioned. I think that is all....
I wouldn't use gas for a cleaner, it tends to explode rather easily. Diesel would be safer but I think bio diesel might be best. Most people probably just use varsol though.
Regardless of what you are using, make sure it is in a well ventilated area and you have clean running water nearby in case you get some in your eyes or mouth etc.
One way to tell would be to find the maximum allowable deflection and then measure it with a dial indicator.
You could also ask someone to "give it a feel" if you are ever around a shop, etc.