yea most likely something got in there, wear and tear doesnt damage the blades like that..

i have no idea it was like that when i got the car. I thought maybe to hot or rocks also. found this (look at bottom of page second from last) but dont see how that would cause the problem

http://www.gtfours.co.uk/pics/turbo/165/turbo.htm

hmm...he says failed bearings...could be as the damage to the blades is towards the outer part, its either that or something got into it...i think it would be more of the failed bearings cause ive seen turbos at full speed with a tiny ass pebble slip through and cause an ugly mess, so looking at that picture i would agree and say one of the bearings screwed up