Someone had a look at my car recently and mentioned that he thought there was an oil leak coming from the power steering pump...does this make any sense? He said oil was leaking from the sensor, possible around the o-ring between the sensor and the pump. I know nothing about the S3 power steering pump, but does he not mean power steering fluid rather than oil?
I changed the cam cover gasket recently, but under a hard drive I still get a small amount of grey smoke coming up from the back of the engine and I can smell a burning smell in the cabin. Could this be a power steering fluid leak? I don't have any problems with the steering though. Does the location of the smoke make sense for that? Any help would be great as the burning smell is annoying / worrying.