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A mate's car is struggling somewhat and I've suggested a few possible causes to him but wanted to get further opinion. He doesn't want to take it straight to a garage without having some info and possibly getting "fleeced" for something unnecessary.

Car is A4 running a 1.8T with K03.

Red light flashes and alarm sounds when engine starts up from cold (light that is next to the engine temperature indicator). This goes out after a minute or two driving. This I have suggested could be linked or could be due to thermostat sensor failure on coolant bottle?

Engine management light has appeared and mostly remains on but has on occasions disappeared.

Car boosts relatively normally up to 4000rpm but then goes "flat". Acceleration rate slows significantly but the car still increases speed (as if Turbo has stopped boosting).

Having tried disconnecting the MAF, the car runs far better without it. MAF has been cleaned and performance improved briefly but the problem returned (I cleaned my MAF at the same time and it worked wonders).

Whilst taking off the MAF and Recirc Valve (DV) it was noticeable there was oil in the air-intake pipework.
I suggested that possibly the seals on the turbo are leaking oil into the intake but this could be due to a few reasons.

Is it likely the turbo seals are leaking and would cause the boost problems?

Out of the following, which is the most likely cause for turbo seals leaking?

Contaminated Oil
Damaged Seals
Damaged Turbine/Compressor blades
Damaged/Restricted Oil Return/Drain pipe from Turbo

I remember someone on here had some issues with an oil drain line being damaged? I also remember someone having impellor fins bend.

Oil can be changed to remove contamination possibility. What work is needed to check/repair oil drain pipe if that is the problem?

Any suggestions/Advice?
 
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