2.3 turbo ranger needs rebuild

[Lift]

Hey guys, so i just traded my v8 ranger for a 2.3 turbo ranger built and tuned on 40psi of boost. supposedly it has billet piston rods, forged pistons, arp main and rod bolts along with arp head bolts, low compression rings and a lift cam with titanium valve springs with 550cc injectors with a turbonetics t4 turbo.

Here is the problem... I noticed once its warmed up it has a knocking sound, you cant hear it when it is cold only when its warm. I also notice the turbo on it is oil and coolant fed and there is no coolant line running to the turbo. Also when it gets hot enough smoke comes from the turbo and it smells like burnt oil. Im assuming the turbo got hot and blew a o-ring or seal or something and is leaking oil out of it like a bitch, i can see where the oil sits behind the turbo.

I also happened to notice oil leaking out of one of the turbo manifold bolts connected to the cylinder head. Not sure what this means, maybe a cracked head or something? Obviously this engine is going to need to be torn down and rebuilt, im just curious what your opinions are on it.

The knocking i believe is because the turbo is leaking oil ran the engine low on oil and bent a rod or spun a bearing.