bad turbo? need help a.s.a.p

[4*G*6*3]

I have a 1ga eclipse gsx.
it smokes at idle, and when i rev it up a little. but for the very short period of time i drove it, it didnt seem to smoke when it was going into boost.

I took the air filter off that conects to the intake of the turbo and there was oil in there. i also took the j pipe off and there was some oil in it.

i think the turbo needs a rebuild but i just want to be sure.
also, the previous owner had a ss feed line going from the oil filter housing. not sure if that matters, but i read when you get a bigger turbo/ relocate the feed line you need to get restrictors, is it possible there could be to much oil going into the turbo because there might not be a restrictor, hence causing the smoke problem? it is a stock td05 turbo.

hopefully i described it well enough so i can get some opinion's from some of you guys who have expirience with dsm's.