Burning oil in the exhaust causes whitey-blue smoke, not black. What is more likely to be happening is your ECU is fueling for more air than is being present due to a knackered turbo, this will produce black smoke on a D. Here is a prime example of oil burning in the exhaust side turbine:
http://www.youtube.com/watch?v=cufnsBzb_wQ
That was peeing oil into the exhaust side, I know because I autopsied the turbo about a month later when I replaced it 🙂
Dont drive it. At all. If the turbine shaft has snapped you’re going to have degraded oil pressure across the engine and have bits of turbo floating around the intake, ready to be sucked through the engine.
Fortunately TDi turbos tend to be cheaper than performance petrol ones. Expect a garage bill for around a grand for it and labour though. Do it yourself with a second hand turbo for ~2-300 if you have the spanner skills.
However it is worth getting it looked at in more detail. My brothers 330d just did effectively the exact same thing and on opening the bonnet, the plastic manifold had split open down its seams. This would produce the exact same symptoms.
Can you still hear the turbo whistling when revved (dont do it any more!) as it did before, or is it accompanied by rattles and screaches or silence?