I was womdering what is happenong here...I took the metal top off the throttle body for cleaning (86 GL10 Turbo).. I noticed a little oil coming from the turbo up the tube which draws air and goes over to the throttle body.

I'm no turbo expert but I've pulled apart many turbos and turbo engines to sell parts. Stick your finger down into the turbo and wiggle the turbine prop shaft. Significant play in the prop shaft means the bearings are worn. When the bearings wear the seals are usually going at the same time; prolly cuasing the worn bearings in the first place. The bearings are fed oil from your engine; and that's where the oil is coming from inside the compressor housing. To repair it would mean a rebuild of the turbo core or swap in a turbo thats not as worn out.

The PCV system also tends to let oil into the intake boot between the MAF and the turbo. Check that boot to see if it has a nice oily grime on the inside of it. If not, then it is likely what MorganM said. If there is a good layer of oil in the boot, then it could just be getting sucked out of the cam tower through the PCV system (or both for that matter).

 

Definitely a good idea to check for shaft play in the turbo.