cheers for all your replies guys, after talking to a few people including my tuner from boostworx (shaun) i am almost certain its the turbo, it would explain the oil and the loss of power on my initial dyno run. I have already taken the majority of the cooler piping off and some of the turbo so i will get that checked out first then if there's nothing wrong with that i will do the compression test straight away.
Atleast if it is the turbo which i hope it is then it will be time for an upgrade! hehe, more power!
I'm very confident with the build of the engine and the running in period so the front seal on the turbo being shot is what makes the most sense to me!