How can I tell if my turbo is going bad?

 

Shaft play. A whine indicating the blade is touching the housing is a tell tale sign. Also smoking (blown journal bearing seals). Look for a rebuild from Blouch or Forced Performance. Journal bearing rebuilds are usually pretty cheap is my understanding (few hundred $).

 

Has some up and down play, but no play in and out.

 

Sometimes when a turbo is brand new, and doesn't have oil in it it can have play. But it is supposed to go away when there* is pressurized oil in it. The turbo is off the car I take it?

 

Yes, less than 20k on them. I got the car cheap because it was smoking. The previous owner overheated the engine really bad and has been smoking since. Some oil in compressor side, but I'm thinking it may be blow by from bad head gasket or damages heads.