That drain looks like absolute hell. Either get a different fitting in your oil pan or make that line more of a straight shot to the turbo. A 90DEG fitting on the pan might help and definetly get a hose that is a lot less likely to flex or bend like that. It looks like your drain also goes almost horizontal. Try to shorten it up if you can so it can "drain". There is no oil pressure on that side of the turbo. Gravity does the work so if oil can't flow down, that's real bad.
As for the seals, they do not break. They wear out. They have almost the same concept as a piston ring. Shape of a C... when they go in the hole they seal the two ends of the C almost touch. Fix the drain, run it and then see if it still leaks.
To check the turbo, put two fingers in the air inlet side of it, then see if you can make the impeller touch the housing. If no scraping noise, then your turbo should be ok to use still. It's pretty hard to wreck the ball bearings unless you have absolutely no oil.
