I recently purchased a 98 tdi that i've been tinkering around with but i know nothing about diesels... She is getting zero boost and is so gutless in limp mode.. here's what i have done.. Replaced the MAF , Replaced that hose inside the ecu which wasn't even bad did it for ease of mind. did a boost leak check no leaks , replaced fuel filter , added a fuel pump since there was some air bubbles in the lines and she just didn't seem like enough fuel was being pushed. I've been sticking way too much money that i don't have to be putting into it.. Clutch and single mass flywheel is next but what's the point if she's not going to run right. She also throws quite a bit of white smoke , more throttle more smoke , and has been using some oil.. i've went through two 5 gallon jugs in 3000 miles.
n75 valve, ALL your vac lines, replace if necessary after testing the waste gate actuator.
The fuel is suposed to have air in the lines, well not realy but its not a problem. if you want to fix that you need to get the uber kit from Nictane.
http://nicktane.com/index.php/product/uber-fuel-filter-kit-passat-2010/
lets put it this way. im rocking 215~ HP at about 400~ ftlbs with crazy CRAZY mods and a satanic Tune from malone on a semi built motor and im not even rocking a fuel pump (YET lol)
Limp mode only really gets activates if too much or too little boost is made, usually too much or out ov value for too long.
If you going through that much oil you need to hose the engine down clean as a whistle with some foam cleaner engine gunk and find where its coming from. pull the cover on the timing belt and check there too. and the rear main seal area (observe oil wetness). check the CCV puck and the down tube on it too, the lower part that has 2 bolts often cracks. If NOTHING is leaking and you can see it coming from the exhaust (use a rag and let the gasses hit it, should be oil spots) you need to replace the oil seals on the valves and check the cylinder walls for scuffing when the head is off. DO NOT BUY PARTS until you find a problem. the fuel pump and filter is one of the areas your wasting money right now!
One other way to check if its the turbo bearings is to disconnect the CCV and let it pump into the air under the car for say 100 miles. Do a full out cleaning of the intercooler and pipes. Run it and see if oil builds on in the pipes. The only way it should get in there is from the CCV. if this is the case, your turbo is fuxeld and you need to rebuild or replace it.
Best bang for your buck for performance and fun is a stage 2 tune from malone, a 20/17 hybrid turbo and down pipe with manifold, PD150 intake manifold and some PP.764 5 hole. Set your IQ with VCDS to 2.5-3 with the hammer mod. This will be crazy fun power but nothing to much where you will have to fix things that break from too much power. It will be reliable as F.
If you do take the head off because oil is NOT LEAKING from anywhere that would cause this issue, Do a port and polish with some undercut valves, new seals and guides. have a shop to the guides and seals and a new deck job. YOU WILL WANT to do a EGR and CCV delete with a catch can ASAP. Message me if you have any questions about this. Ive been there done that. First and foremost is to fix your oil issues.