Liquid glass = waterglass = sodium silicate. It hardens on contact with CO2 gas. It could potentially work for coolant leaks, but not for oil, don't want to mix that stuff with oil. Its what they used to seize engines with in the Cash For Clunkers program
IMO - If you want to fix something, do it right, especially if you have long term plans with the car. It'd be okay if you want to limp a beater another month or two before junking it, but for a car you have high performance plans with - IMO its a no-go.
The more and more I think about it - I think your turbo might be shot in addition to having too much oil in the motor. Do you remember the procedure I told you for checking the turbo?
-Rocket