Dont sound like a good engine at all And will probably need a rebuild



Running to much boost for the engine...Also im guessing that it has a standard intercooler aswell

As for the reasons...

1, The bleed valve is more than likely open all the way , so the engine is running to much boost ( like you say )

2, can only think this is a compression problem

3, Could be a number of reasons... Oil breathing / water not circulating


Not to sure to be honset.. but either way, its not looking god...