Don't ya just hate it when stuff falls out of your crack?
Seriously though, if you decide to keep your motor turbo'ed make sure you get a turbo timer to cool that thing down before it shuts off. Also a larger exhaust really helps with the power on turbo engines as well as keeping things cool in the engine compartment.
It looks like that turbo got too hot. The only things that would cause it to crack is if it got too hot or if something got sucked into it, and by the looks of the tubine I'd say nothing got sucked into it.
You also might want to look at something with a external wastegate. They sound to be more reliable and you can change the spring tension on them to up the boost - or you can just get one hooked to a variable boost controller.
