I removed the cold side compressor housing on my stock turbo,there was a grease like substance on the flange by the o ring.What is this substance? and Do I have to replace it prior to assembly?Thanks,ikle.
No, nothing in the housing,it looks like its there so you can clock it easier maybe,but there's not alot,just a light smear.It almost looks like a Vasoline type substance.
the later housings went to an O-ring type seal on the compressor housing vs. the stepped housing that required RTV that was common to the early T3.
the grease i imagine is a brown or a white color which is usually gently smeared on to aid the assembly of the cover so that pinching or tearing the O-ring is avoided.
vasoline or engine assembly lube works well to reassemble.