We called the RAC, who sent someone to us (eventually) and the verdict, after topping up the oil (which was showing as very low when he arrived) and water and testing the ignition (awful clunking sound and shout to turn it off immediately) was that the turbo seal had failed which had sent oil into the intake and basically killed the engine. As you can tell I am not mechanically minded. He mentioned the crankshaft as well I believe, presumably as one of the things that was damaged. His thoughts were that we would need a new engine.
The oil feed pipe to the turbo broke a while back and I bought a new one and got it fitted, but I am thinking that in hindsight perhaps I should have gotten the unit checked out at the time.

So where to go from here. My first port of call is my local garage who are going to call me back Monday to hopefully take the vehicle back with them and check out the damage (not that I don't believe the chap last nights assessment, but it was dark and on the side of the road so I thought a full day light appraisal would be a good idea at this point).
I guess I would really like your thoughts on what the best thing to do would be in the case of needing a new engine. Recondition my one? Get a 'new' reconditioned engine (possibly a 2l as suggested by the chap last night)? Plus if the engine needs replacing am I best to take it to a specialist (I am near Doncaster) or is it likely my local garage should be able to do the job?