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Engine/Transmission (1998.5 - 2002) Turbo Leaks Oil

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I am postin for a buddy. He has a 2K 3500 4x4. 5 spd. His turbo has an oil leak. Is this a bad problem? His TD seems to be underpowered compared to others. It has 130,000 miles on it. He changes the oil regularly and fuel filter. It has a K&N FIPK on it. And it looks as though oil leaks from around the bottom somewhere too. Any help would be greatly appreciated.
 
May be the return line on the turbo. I think it may be just a rubber hose with a hose clamp on it. Might try tightening the clamp before worrying too much. If this is not it, then you are looking at something that should be fixed pronto to avoid BIG problems (exploding turbos, engine runaway, etc).



Note: If any of the oil is leaking into the charged air side of the turbo, it could cause a engine runaway, so it can be serious.
 
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