Use lubricated 80 grit paper on something flat to smooth all the mating surfaces until they are flat. Use a light smear of ultra copper on assembly. The oil is from your crank vent. It appears that you don't have an oil separator, but just a normal n/a valve cover. Andrew
Yes, I have run a VNT17 with the vanes fully open on a 1.6 and it will easily put out 15+ psi. Without added wastegate control it's not possible to regulate boost lower than that.
Hi, I confess I haven't read every post in this thread, but it strikes me from some of your latest pictures that the clearances between the turbine and compressor wheels and their housings is way too large. I would think that all of the boost and exhaust gasses are slipping past the wheels. This could easily explain the lack of boost.
Yup, freeflowing exhaust is good. Still, if your wheel to housing clearance was correct in your turbo you'd quadruple your max boost with the vanes fully open.