there is oil just on the inside of my inlet to the compressor. Seems to be that my seals..have gone out. Whats the long term consequence of running like this and what are causes of this. thanks guys.

 

You can burn the turbo up due to lack of oil.You can blow your engine if too much oil leaks out or loses too much oil pressure.Seals go out alot on turbos for any number of reasons.Poorly built, high mileage ,acts of god.

 

my T61 had been doing that the last 2 years... lots of friends turbos also. I never bothered to fix it.
Its not going to starve the turbo or engine, its not pouring out just a spritz that you wipe off at the end of race day