problem with Audi a4 1.8t 1997 turbo - do i need a new one?

hi there - i took my car in for an oil change today and the guy told me that he sees oil leaking into this cover that is screwd into the bottom of the
engine. it the part is more of a shielding i suppose to keep out dust, sand, snow, etc.
anyways it isnt that much oil but he says it will get worse. he told me that is why i am noticing a lack of power in the whole rev range. my question is this -
- is there any way to salvage this turbo? could it just be a gasket or seal that needs to be replaced? it only has 118000km on it.
- is there any bolt on turbo for this engine that does not require a new exhaust manifold etc? i mean - just the turbo - no extra boost control modifications - no new manifold - no nothing. i have heard of the k04 being a possible candidate but it needs mods to get it to work in my tiny engine bay.
The guy gave me a quote of 2200 for a new non-stock turbo - possibly a kkk k04 and 800 for a new manifold. I was so mad but since the mechanic was a friend of a friend, and he does tuning for alot of the import scene i dint wanna seem angry.
Any help would be appreciated.

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