If that blade is chipped or cut up at all it will be a problem, if the shaft isn't straight then there is another problem. I would break the turbo apart and take a nice pic of the cold side impeller.
The bigges problem I can see is if you do up a good motor, and everything is perfect on the build up, and you throw an ok turbo into it....... and the turbine decides to hit the turbine case.... and chips fly off :evil: well it's not pretty