Loss off overall power, checked Turbo filter which is clean and ok, Re sat the air inlets so no leakage. Looked into Turbo inlet, it was very Oily and there seems to be a bit of play with the innards which looks to be causing a rattling when the engine is running.
Would the bearing be gone in the turbo motor and would this cause the loss of power and excess oil?
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It could be your fuel filtter, or there is a filter on the inlet side of the pump, unscrew the 17 mm banjo fitting and remove the filter, the next thing to do is throw it over your shoulder and refit the banjo bolt, don't replace the filter in the pump.
I am not familiar with the 407 but I would think it is a HDi, if so what you describe is an air leak from a pipe from the pressure side of the turbo, I have had this on a Saab, in that case there was an over pressure switch under the dash and the pipe fell off. Look at the top of the engine, on the inlet side there will be a pipe from the inlet trunking or manifold, it should (maybe with a tee piece in there) go through the bulkhead
Sounds like either a) you have air or water in the fuel. Drain the fuel filter container. Close it all up tight and see how you do. b)air is getting into the system - does it take a long time to start in the morning? c)an injector is going down. Have a garage to an injector leak-off test. I think C sounds most likely. It is possible, if you have a very rare 1.9 Turbo edition, that you have a split turbo hose, and you are loosing thrust through the pipe. Check the rubber hoses from air filter to intercooler (if fitted) and intercooler to turbo, turbo to inlet manifold.
I had a similar issue to this after I got in a VERY small fender bender (literally) in an 87 Turbo Supra. In my case, my pasenger fender got pushed in JUST enough to crack a charge pipe and cause a boost leak.
Basically, what was happening was the turbo would spool and build boost, the mass fair flow sensor would read all this air coming in and tell the ECU to dial up the the appropriate amount of fuel. When the air reached the cracks in the charge pipe, it would escape out of them. Thus there was a much lower air-to-fuel ratio, causing less fuel to combust, which lead to power loss and black smoke out of the exhaust.
My guess is either an oxygen sensor, or more likely a boost leak.