2004 Jetta non-turbo, blinking oil lamp (red light) while driving

Question edited for clarity and toss in some CAPS.
Question moved to model category.

P2177 is Fuel Air sensor showing Lean mixture, so it is dumping more fuel and sooting up plugs and the catalytic converter. After fixing, you will need a system cleaning additive.

https://www.google.com/search?q=2004+Volkswagen+Jetta+2.0+P2177

P2177 is on a similar theme

https://www.dtcdecode.com/Volkswagen/P3211

https://www.google.com/search?q=2004+Volkswagen+Jetta+2.0+P3211

..

turbo failed yes it will let oil in the exhaust thats your smoke replace turbo. clean engine well change oil and that should fix problem.

Check the intake pipes from the air filter to the intake on turbo in case its got a air leak and its sucking in dust and grit ,If i knew what was being damaged in the turbo i would have a better idea ,if its the bearing then it has problem with the oil feed being partialy blocked with gunge from lack of oil changes which is the normal reason

A new turbo charger is about $340, but you can buy the bearings and seals and rebuilt if yourself for about $100
http://turbosandparts.com/
It is not hard, and it does not take long to do.

I normally do not bother with synthetic, but with a turbo charger, it might be worth it. What really seems to ruin turbo chargers the most is not letting them cool off before parking.
Once you turn off the engine, there is no longer any cooling, so the build up heat will burn up the oil and seals.
Run the engine for at least 5 minutes below turbo levels, before shutting down the engine.

check the condition/tightness of the drive belt/belts , also check the cooling fan is cutting in at the correct engine temperature, hope this helps

Hello, and welcome to FixYa.

The 'Maint Reqd' light indicates that you are due for an oil change. It will blink 4,500 miles since the light was reset at your last oil change, and stay on steady after 5,000 miles.

If you recently had an oil change, all you need to do is reset your maintenance reqd lamp. The procedure is here on this site inthe 'tips and tricks' section, and it is also in your owner's manual.

I had the same symptoms and found I had suffered from turbo failure and the final cost at the dealer was $3500, last VW I will ever own. I hope this isn't your trouble too, good luck

has the dealer hooked up a mechanical test guage to see if the oil pressure is really low? If it is low make them fix it, low oil pressure will destroy the engine in a very short time. Low oil pressure is caused by either worn engine bearings or a defective oil pump.

Sounds like it could be a sludge issue which can be caused from using the incorrect oil. It is a very specific synthetic type of oil that VW suggests and when you don't use it the engine can actually 'gunk' up and cause turbo failure. (This problem happened when a non-vw dealer sold me my car with the wrong type of synthetic in it and my turbo seized) 
Google: "1.8t specific oil"

SEE IF THE MUFLER HAS ANY SINGS OF OIL OUTSIDE
BUT MAY BE YOUR CAR WAS BURNING OIL BY EXAUST OR WHO KNOWS SOME ONE MIGH HAD ADD DIESEL INSTEAD OF FUEL?