Well, I rotated my turbo from about the stock position of a WRX turbo, which is with the compressor outlet pointing towards the drivers side horizontol to the ground. From there, I rotated it clockwise (looking at the front of the car) until it the compressor outlet was pointing towards the passenger-side firewall horizontol to the bround. Basically, I just rotated it 180* from its original location. All I did was loosen the bolts on the back of the compressor side of the turbo, I think there were six of them, and rotated it, no problems. I am using a rebuilt Legacy RHB5 turbo, rebuilt from www.turbocity.com.
I would be suprised if your turbo was already shot, and since you have the tapped pan I really don't know what to tell you. Maybe they did a crappy job of rebuilding it, I don't know.
Right now, my advice to you is to go buy an oil catch can.
I can recommend this thread to you, as Jewbaru had a similar problem just recently:
The one above sort of is the same situation you have. Just remember, nearly all turbo's are remanufactured, even ones that come in Ludespeed kits and what not, so yours could be a bad egg.
And this one:
Oddly enough, both are Jewbaru's, don't mean to pick on him.