Exhaust will be:
Clear-fine
Gray-cold engine
Black-too much fuel and/or not enough air. Some black after flooring is ok
Blue-oil consumption, rings, blowby, leaky turbo, etc.. Oil
Shaft play is how you check a turbo. And inspect the impeller and housing. If chunks are missing walk away. If the shaft easily wobbles or moves in/out or side to side it will need rebuilt. Does it spin freely? Its good to give it a little oil. Dry turbos will have some slight play.
Blowby - pop the oil cap off when running - lots of "smoke"= blowby. Or yank the hose off of the cdr. Same result