The turbo had a leak and the mechanic said I could drive with it, but he could only diagnose it as a internal leak. Any ways I was driving it and The oil caught on fire, i beleive, and burned something cuz now the turbo makes a noise of metal rubbing or soemthing. And it kicks out a lot more smoke, the car still runs and idles alright but the turbo seems to make it run at a lot less power. Any help, I am assuming it will need to be replaced at best.

Sounds like you might need a new turbo

Lots of info can be found about replacing the turbo. Basically 3 bolts on the header 4 on the DP, 2 coolant lines I/O, 2 oil lines I/O, and 2 gaskets. Can be done pretty quick and people are practically giving these turbo's away. Good luck with it.