Dear Mike,
This is a "been there done that" scenario with my first e46 320d fl.. Stop wasting good money on small parts hoping that the problem will go away,
White smoke=oil being burnt in the combustion chamber..
Black smoke=overfuelling... However the Ecu will retard fueling extensively if there is a lack of boost from the turbo so that almost always is caused by leaky injectors...
Your turbo is failing or already failed... Remove the outlet pipe from the turbo to the inter cooler and you will find significant amounts of oil, not just smearing... This oil is also collecting in your intercooler and soon enough will also start coming out your exhaust from the damaged turbo, worse case scenario is the amount of oil coming through the turbo into the intake will cause the engine to "run away" and then you will cause some major damage...
The presence of oil in your exhaust will also clog up your cats and that's more expense to replace or decat, the crankcase breather that the mechanics speak of will need to be changed as well with the turbo or the replacement will be doomed to failure as well, this is probably the reason that the turbo failed anyway. be sure to change to a "vortex" type and the part number for such can be found by searching the forum or using realoem.com
Find a good mechanic, ask him to quote labour to remove and replace and get the replacement turbo from turbodirect.co.za
They had the turbo for your car for approx R7500 for a genuine replacement unit, do not try and service the old unit as there is no replacement parts or kits available from Garrett who manufacture the turbo...
Sorry to be the bearer of bad news but its the reality with the 320d motor and must be catered for in its maintainence, lastly, if you find "cheaper" fong kong replacement parts for cheaper on gumtree or so on, stay away from it like the plague! They don't last and some don't even boost properly...
Keep us updated as things unfold...