found my oil leak

Car has been using alittle oil at late, but couldn't find aleak bad enough to account for the amount lost. fixed all the usal spots but yet it still kept losing it. Past month its been running like a bag of spanners when cold and smoking like hell, with abit of a mis. This morning got it up to temp but it kept on smoking, which it normally didn't do. Also noticed that turbo didn't sound right. took hoses off to find them swimming in oil and alot of swarf. My question is what damage is likely to have been done to the engine with the swarf thats gone into it.

Its a 1996 300tdi discovery. Not going to run again until i can source either a good conditio seocnd had unit or a re man unit