While changing the oil today I had my filter off and noticed something odd. I cant remember if I have noticed this before but there are no nicks in the blades and it has no in and out movement and very little side to side. It spins freely fine and builds boost as it should but as you can see there is a chunk of metal missing right behind the nut.

That looks normal to me, my turbo is like that too, from what I've heard thats how they balance the compressor wheel.

I was going to say the same thing it looks like a balance cut on the hub of the compressor wheel. But I will say you NEED a better air filter and clean the turbo there is way too much dirt in that turbo!

I have always ran clean filters and my bhaf is new, I think its just the crappy cell phone pic because it doesnt feel dirty or come off on my fingers.

that is a balancing grind. you will see the same thing on the turbine wheel as well. they dont balance the nut as that will change location when you mess with it. check out turbo balancing on youtube and you will see them do the grinding for balance. Pretty neat stuff!

The comp wheel will also have some balancing grinds on the back side of it. It so the parts can be balanced and the turbo doesn't require balancing post assembly.

Thanks, I will take everyones word for it.

Here are some pics of a HE351 wheel I have. You can see the same grind spot as yours, and 3 places they removed materiel on the back edge.

Good deal, just got kinda worried because I didnt remember seeing it before.

http://www.youtube.com/watch?v=6vpPaUXBJ-U