Hello all!

I have a 2007 Audi A4 Avant 6SPD with the 2.0t. the car is stage 1 with turbo back straight pipe, CAI, PCV system delete with catch can, running about 19psi boost. The car has just over 215k miles on it.

When I'm in gear and cruising, I have no issues. But when I go to downshift, a huge puff of blue smoke comes out the back. and if I continue decelerating it just pumps blue smoke out until I put the clutch in. And why all this is happening, I also get a very strong smell of oil burning inside of the cabin as well.

Like stated, I deleted the entire PCV system, and I did a compression test and I'm getting 200 PSI on cylinders 1,2, and 4. On cylinder 3, I'm getting 185.

I also noticed that the entire transmission is covered in oil and the subframe is as well. After some more looking around, I also saw a lot of oil around the oil filter housing.

Where could this leak be? Could it be multiple issues? I appreciate all the feedback on this!

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