small 6" vacuum line between the diverter valves..
 

i noticed it was torn, so i replaced it today. my power loss situation still isnt solved. is that line suppose to have oil in it? if not, are my diverter valves messed up? heres another reason why maybe my valves are messed up: it sounds like they are dumping the boost WAY too early.. so my car has power loss. when i 3/4 throttle it to 4000 rpm, then let go, it sounds like a blow off valve. its THAT loud. are my diverter valves broken? thanks!

Are they original valves or aftermarket (Forge/Bailey/etc)?

you have a torn Throttle body boot probably...search the archives
 

and the DV's do go bad

2nd
 

Check under and around the big hose clamp. TBBs often tear under the clamp - OEM replacements are approx $10 at ecstuning.com. A better replacement is the Samco or AMS TBB. The best solution, IMO, is the APR bipipe.

Oil in the DVs is not uncommon, particularly on the driver's side. As noted, DVs do go bad. A better replacement is the 710N - about $35 each.

Sounds like the problem I have...
 

...my driver side BPV seems to leak air while the passenger side doesn't. I was advised to upgrade them with the 710N valves from the TT roadster. I STFA and confirmed that it has been done with many other's 2.7t with positive results. ECS tuning has them for $30/ea.

As for the oil, the vacuum line that snapps onto the back of the plastic y-pipe on top of the engine had some oil sitting in it. It concerned me, as I know it is an issue with the older turbo'd Audis as the turbos tend to leak oil...maybe it's a sign of impending KO3 failure? :/

it would make sense that a torn vacuum line would cause DV's o not fire
 

(vacuum on one side helps to pull the valve open)...which would also result in turbo damage...(eventually)
yet again i could be way off base but my 2c

everything's stock.. ihave a APR chip if that makes a diff... did i over boost and break something?

jes meng

It's likely a bad diverter(s) and/or the throttle body rubber boot.