turbo air flow diagram
 

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picture added
 

What's the question?

The seal looks like it was blown out. I assume it's leaking air pressure and reducing the air pressure into the engine. Is this correct?

That black rubber spacer between the up pipe and intercooler is more a spacer than seal. The red o ring inside is what does the work in my opinion. It seems to me the bracket that holds down the intercooler is fastened wrong and should be mounted on the two back facing bolts and not those top bolts.

The black gasket takes up the space between the IC and the turbo up pipe. It does not hold any pressure. Very common for the O-ring to be sliced if the intercooler is installed incorrectly.
Unusual setup on the bracket.

If I understand correctly, If the o ring is damaged the air pressure is escaping, pushing out the gasket. Is this correct?

As Rarlyl8 stated, that black 'gasket' is nothing but a spacer which fits between the IC and the up-pipe, I theorize the reason being to cushion the two metal surfaces from touching each other as the result of the exhaust system flexing somewhat, causing what should be miniscule verticle movement of the up-pipe. Either that, or it's just a beauty ring that the Porsche gods felt was important. I took mine off years ago as it served no apparant sealing function and my system is fairly rigid.

Your picture shows that gasket as being sandwiched or bunched up on one side, possibly causing too great a space between the up-pipe and the IC and perhaps lessening the sealing surface area for the internal o-ring. Take that thing off, align your IC and pipe correctly to reduce the gap (the pictured position of your IC mouning bracket will cause your IC to ride too high I think), rotate the up-pipe to get the best uniform fit with the IC....and of course while you're at it check the o-ring.

yes, it could push the gasket out.

replace that red Oring and the Oring on the throttle body

Looks like that extra bracket piece that others have mentioned is the problem because it's holding the intercooloer up too high and a slight angle.
Take it out of there and rotate the charge pipe counter clockwise just a timy bit so it lines up correctly with the intercooler and it will probably fit together right if things are right at the throttle body side.

It's hard to describe.
If you had another 930 to look at where things are put together right you could see how it should be.

I removed that black rubber gasket between the charge pipe and intercooler a long time ago too. With some aftermarket intercoolers the fit is better without it and there's still no bad aluminum rubbing against aluminum going on if the inter cooler and charge pipe line up and fit together just right.

thanks. I rotated the pipe and it fits up perfectly; hardly a gap at all between the two pipes. But I found that the bolt holes do not line up right, thus the angle bracket. Why that is? mystery to me. Anyway, I found a way to reconnect everything with the angle bracket while maintaining a tight fit at the seem. End result is it looks great.http://forums.pelicanparts.com/uploa...1374789189.jpg

It looks like your way works, but here is how that bracket is supposed to be mounted.

http://i630.photobucket.com/albums/u...e/DSCN0052.jpg

If you are/were leaking you should hear a strong hissing noise (and not feel brisk acceleration) when the turbo spools up. Assuming you have a stock air cleaner - in that if you have a cone filter you can hissing as air rushes in - sounds a lot like a leak. So then the key would be how the car feels acceleration wise.

PS that mounting _looks_ better in that the bracket is holding the IC _down_ - keeping it from separating....

maybe the new IC on my want-to-buy-to-make-car-faster list will fit up better

Sorry to hijack this thread, but its kinda related!

I need to remove the up pipe and the intake tube to the left of it, to chase down an oil
leak buried in all the stuff on that side of the engine.

I have removed IC, loosened all the clamps and tried to remove or move the intake pipe.
Because of the way the pipe is positioned through the engine tin, I cannot get it to move far enough to remove the rubber connecting hose segments. What is the trick here?

Thanks!

I forget what I did the first time but i think i was able to get that intake rubber sleeve off without taking out the turbo. I have a 965 downpipe now so much easier to remove and install.