oil leaking, water and smoke coming outta exhaust

I was hoping someone on here could help me.... i dont know too much about audis i was an import guy B4.... so please be patient... My wifes 00 A6 2.7T is smoking like hell. the otha day was like 8 degrees and when she started it there was alot of smoke. when she tried to drive it was still coming out like fog covering the street. she went bak home and waited half an hour and tried to start it again it started making a weird noise... i put power steering fluid in it cuz it was low for some reason and the noise stopped  but still smoking. a friend put it on a lift and said it looks like it leaking oil from the turbos.... we put a quart of oil in it and it still smoke but not as bad as B4. i read on hea that if the turbos are going it will spew oil outta the exhaust with the smoke. No oil but it seems like water is pouring outta the exhaust with the smoke when we push the gas pedal down. I know it need to have the timing belt serviced cuz its over 100K but i think i should fix this problem first. i tried to look around the top of the engine bay but dont really know wat im looking for not much room to see down there.... so any info or tips would be grateful cuz im trying to get as much info as i can B4 i am forced to go to the dealer cuz i dont wanna get raped by them. anotha guy said if i bring it by his place tomm. (Monday) he will put it on the lift to try n see where it is leaking but it wasnt smoking that bad when  he seen it... PLEASE HELP. THANX

if oil is leaking inside the turbo/turbos... it will smoke out the tailpipe...

i juss came back from having the car looked at and anotha guy said he think it could be leaking from one of the oil lines into the intercooler. he said it seemd to be leaking from the intercooler hose and it prolly built up in the intercooler until it was finally released into the exhaust because after puttin more oil in i drove it today and it didnt seem to be smoking..... the first day we noticed the problem  it was clouding the whole street . this guy said he cant start taking anything apart and get a better look at it til wednesday... I hope it not the tubos leaking or blown. the car seems to have lost a lil power... doesnt wanna go sum,times when the gas is pressed...then again im scared to really get on it cuz we need the timing belt replacerd.... WISH ME LUCK 

How many miles does the car have on it? Original turbos?

not sure if the turbos ever been worked on i bought the car with 88,000 and now it got 107,000... definitely overdue for the timing...not sure bout turbos

i seen a drop of oil come outta the exhaust too

HOLY crap your skating on thin ice over 100k and not having the timing belt done!
Get that done NOW! The oil leak is probably the valve covers, and if your coolant is probably leaking from the water pump and aux. water pump i would imagine at that mileage.

yeah gonna have the timing belt n shiet done when i get this leak fixed... but how can the valve cover be leaking n causing the smoke to come out the exhaust... if the valve cover was leaking on the exhaust or engine wouldnt that juss smoke from the hood or under the car...not outta the exhaust

It depends on what color the smoke is coming out of the exhaust.
Blue= Oil
Black= rich condition
White= Coolant
 
If its just black then your running rich as s*** and you probably have a bad CTS (coolant temp sensor) or the engine is running really cold because the thermostat is stuck closed.
If the color is blue then its burning oil, change the PCV componets (black valve on the turbo Y pipe) and assostiated hoses.
Another cause for coolant/oil burning out the exhaust is the turbos are shot.

thats what i wasnt hoping is that the turbos are shot... if they are leaking oil from the seal can it still be rebuilt... or will it be damaged from the leakage... but it was smoking one day real bad but i put more oil in it n now it not really smoking...

guess i just have to wait n see for sure when this guy can start to take shiet apart wednesday

Don't bother re-building them, put in a larger (more reliable) set of K04's in it that you can get for around 2k for both. You can also get a hell of a lot more power out of these turbos with the correct tuning if you wanted to.
Since you HAVE to pull the entire engine to get them out (30 hours of labor) you might as well throw in a set of better turbos if you catch my drift.
 
There are lots of sites that sells K04's, www.ecstuning.com being one of them. Shop around you might find some for cheaper.
 
I would still clean out the PCV system first, maybe do an engine flush during the next oil change/ timing belt replacement and see what happens first.

the engine has to come out to get to the turbos... cant juss cget to them from underneath the car... and if i were to upgrade to the ko4's what else would i need to upgrade... juss a chip... or more

Yes you have to pull the motor, no other way to get to them.
You can just run the K04's without any other supporting mods, the stock engine management will adapt. Im just saying if you wanted to a new ECM with a set of injectors could push you over 400 horse power.

wow so 2k+ juss for parts how much would it cost to pull da motor n swap the turbos? n juss outta curiosity how long have you been working on audis... you must be pretty good at doing all this stuff yourself huh... I wish i could do the work myself..

Its about 30 hours of labor to swap em out, so it depends on what the shop labor is. I would go to a good euro shop that usually has a labor rate of $90 an hour. My old shop charges $135 an hour which is mucho too much.
 
I've been tinkering with audis for about 5 years, and i was a master mechanic for about 3 years.

so you would be able to do this yourself if it were your car.... wow thats gonna be like 5k for an upgrade then .... i would juss be worried after all the the valve gasket or head gasket n a bunch of otha shiet would f$%# up hahaha

I really doubt its the headgasket, im positive the valve cover gaskets and cam seals are leaking, cause they always do.  Like i said, before doing anything expensive take care of the necessities first: Timing belt, water pump, thermostat, valve cover gaskets, and cam seals, which is already gonna set you back a couple a grand.

ok well thanks for your help it was good to talk to someone who really knows their stuff... ill get it done this week hopefully and ill repost my progress... THANKS AGAIN