OK, im gonna go in depth here and describe how the whole process works
Alright. the air comes out of the exhaust manifold into the exhaust sode of the turbo, it spins the turbine fins which is connected to a shaft that turns the compressor fins on the intake side...the filter is connected to the intake side of the turbo, as the comressor places spin is creates a vacuum that sucks in air and compresses it, this air comes through the filter, to clean it. now, as it spins very fast, it comresses and goes out through the turbo through what i call a J-pipe. which is connected to a Lower Intercooler Pipe (LICP), then it goes through the intercooler which cools it down. then goes out through the Upper Intercooler Pipe (UICP) then from that pipe, leads to the throttle body.
Now as more air goes into the engine, more comes out, the more air will spin the turbine fin faster which sucks in more air through the intake side.
Theres a page that i saw a while ago that went WAY indepth, i mean LOOOONG description, i couldnt find it though
http://www.dlaser.net/11514.html in this link, scroll down to the enigne shots...u see the filter connected to the pipe that leads to the intake side....you can see the LICP but it goes to the IC, on top left, u see UICP its that black pipe incase u couldnt see it....
oh yea once the air spins the turbine fins, it goes out through the O2 housing which just reads the 02 levels...then out through exhaust....
does that clear things up?