I usually love the smell of petrol but.....

Snap....had the same problem in mine.
The the turbo replaced, and a new one fitted, car was still smoking, and no boost. Turbo was removed AGAIn and sent back..stripped found no faults returned and re-fitted. (Total pain in the ***).

When the turbo was fitted for the second time the smoking was gone but there was a strong smell of petrol, a long with their still being no boost. Limped over to Star Performance, he found the seals in my original, uprated fuel pump to be knackered, this was allowing tons of petrol into the head and into the cylinder, and probably forcing the oil past the piston rings before and causing the smoking.

He replaced the seals in the turbo, and the oil ( 2 oil changes in one day, yikes!!) as their was loads of petrol in the oil. The problem of petrol mixing seems to have gone away, as ive checked the oil and smells just fine now and there's no smoking. The smell did linger in the car thru the HVAC system though and i think its only just going away now touchwood, after a couple of weeks. All else seems fine so far i think.

****** hell, why on earth didn't Audi pick that up? Borewash can be a fairly serious problem, since petrol obviously isn't intended to circulate around the lubrication system. It can lead to bearing damage, and polished bores, meaning a crap seal...smoke..and loss of power.

Have you guys tried replacing the Charcoal Canister? It might sound weird but my fellow Mk.5 GTI mates had the same problem too. Kinda fixed the problem after that.