The picture isn't great, but it's the best one I have. The description is decent tho, and the two combined should give you the idea.
Are you sure it isn't leaking down from the supply? The supply is dry?
I see now what you did with the drain in the picture. Something else to consider.
I have checked many times and it's not leaking from the supply. When I remove the hot casting,
you can see the oil coming from the seal area. I would have to remove the hot turbine in order to see the seal area.
I don't want to do that because I'm not sure what I'm looking for anyway.
Here's what it should have inside if it was rebuilt properly

Item 3 is a like a tiny piston ring and should not allow oil to leak past unless there a restriction in the drain. The ring I used in my rebuild is a new style 360 ring (ends overlap slightly) but even the stock one should keep the oil from leaking - unless they forgot to install it or assembled it wrong.
That is, if I understand correctly where your leak is (between the hot side and the bearing housing)
Wow very cool Gizmoman. This diagram tells a lot. I think I will remove the turbine and take a look at this ring.
I'm not installing it until I have confirmed one way or another that all is in place.
Where did you get that style 360 ring? Maybe I should replace it.
This is exactly where it's leaking.
Thanks
Tony
For the life of me I cant find the link, or even my receipt.
I bought the kit from Dieselicous (sp?) for around 100 bucks.
Two big features were a thrust bearing with more surface and the 360 degree ring where the split ends are ground to overlap. Like I mentioned, it looks like a tiny piston ring and should fit snugly in the groove on the shaft and the OD should be tight in the housing.
Stick with it, It would be a shame to change out your engine due to this issue (unless your not happy with the performance).
I just found this thread. I also have a K14 with an inexplicable leak near the turbine housing down onto the oil return line. Not as much of a leak but messy anyway. Interesting.
I'm still working on my rebuild so I may still have a leak as well

. Mine leaked (oil film everywhere around the turbo) before I blew the motor but libbydiesel noticed in a photo I posted that my drain wasn't clocked to exactly 6:00.
I have since modified the drain and it's dead-on at 6:00 and flow free. I even made up a new #8 AN hose with red and blue fittings cause adding bling never hurts.
I am hoping that will solve the issue for good. My guess is that the drain really needs to be at 6:00. I'd also make sure the block can breathe as well. If the pressure in the crankcase can't relieve itself, it may push oil up that drain line. I'm not sure if it matters but my drain goes to a fitting below the oil level. It's a #8 JIC male tig welded into the aluminum pan.
BTW, my application is the 50 degree set-up in a Vanagon.