How bad is the damage, if there is severe shaft play I would drop your pan. I know from experience how much material ends up in your pan. Ask Barton, myself, or Jaei Sun whats left in your pan after a turbo suddenly goes out.
Now if it was just an oil seal letting go, I wouldn't be too worried but to me it sounds like you will have some serious bearing damage.
good luck, and go buy a pte 3561.
Jim