Should have thought of this earlier Austin - what does the drain line on the turbo itself look like? Does it have oil on it, or is it dry? I'm assuming it has oil as well... or does it.
I'm still leaning towards the thought of a batch problem with the VF34. Same problem on both turbos.... but did not occur on stock turbo.
Here's a thought. Put the VF34 back on, but instead of putting the oil return line back into the hose, hook a seperate hose up to drain it into a pan. Just fire the car up for a few seconds, see if oil is actually leaving the turbo. Don't even hook your intercooler up to it though, it'll just fill back up