1998 Audi A6 1.8T engine problem?

[bravo]

it all started when the oil light started flashing, after a while there was a slight noise coming from engine.put in some oil but car started smoking heavily and lost power. it still starts but the rattling is a bit loud especially if i gentle rev. is it the turbo or engine knock- would it be expensive to replace engine or get it fixed,???thanks

 

[Monkeypie]

Open oil filler cap and radiator expantion bottle cap then start the car and let it idel, any up and down movement in the water or puffs of smoke from the oil cap you need to stop running it immediatly and get it to a garage