Hi folks,
Ended up deciding to redo the turbo. Not so much the missing pressure as the thick white smoke coming out of the exhaust. It was so bad i was stopped regularly by other drivers upset at the damage i was inflicting on our precious environment. Went to a LR specialist, he took the hoses off the turbo, revved the engine, and within seconds you could easily see the oil coming up through the turbo out port (the compreessed air side). It was definitely time for a new turbo.
Ordered the rebuild kit fro G pop shop, got it, and took the turbo out. I could not believe the amount of junk in it. It was a miracle it was even rotating. After a couple of days in various cleaning solutions only half of the deposits came out, so I realized I can not continue the rebuild myself. So, I got an exchange unit and installed it in the car.
Now, after some adjustments, the car runs fine and, more importantly, there is no trace of smoke off the rear end, thank god.
Conclusions? Don't under estimate the turbo as a cause for whitish smoke, even if it does not whine and the car runs fine.