I should have done more research because it seems these cars are notorious for problems. Just doing a little browsing I noticed some of the problems I see here are very similar to the ones I'm starting to see on my disco. I'll list the problems I have below:

2001 Discovery with 54300 miles.

1. Steering wheel noise when turning only during very slow turns.

2. When driving slow I hear some metal ringing or clinging noise (I suspect brakes could be wrong)

3. Valve cover oil leak (no bad, but still a problem)

4. Engine compartment noise sounds like a belt is rubbing, but the dealer replaced all belts to include water pump, but I can still hear the noise, but it's not as loud.

I purchased eagle standard warranty to include the warranty that covers the seals and gaskets.

If you guys can give me any advice on these problems I would highly appreciate it. Also do any of you have any experience with this eagle warranty?

By the way great website seems to have a wealth of information.

 

1 What sort of steering noise?
2 that sound will be your front drive shaft failing
3 Two out bolts can be tighten a small amount that will sometime help with the oil seap.
4 Sound like the standard idler pulley noise

How mechanical are you, do you want to do all that is needed and save some money??

 

1. It's like ahumming noise, but it only happens when I'm making a slow turn while turning the steering wheel all the way left or right.
2.Is this an urgent matter? Can I let it go for a little until I get the money together?
3.I'll try that.
4.Again, how urgent is this?

No, I'm not mechanically inclined, but my dad is so I guess I'll be asking for his help.

Wish you were my next door neighbor...Thanks for your help.

 

The drive shaft, is a $7000 urgence, don't deal with it and it can take out your tranny and sometimes the t/case. If you are lucky and have a CDL t/case, you could remove the drive shaft and drive on the rear only.

IF ONE OF THE PULLEYS IS MAKING YOUR NOISE THEN YES IT CAN ALSO BE URGENT, JUST ALOT LESS COSTLY.

 

Steering wheel noise is no big deal.
Take it to a driveline shop or muffler shop and have them check to see if you have greasable u-joints on your driveshafts, if not have them replaced ASAP.
Take it back to the dealer and have them investigate the noise from the pully, if your serpentine belt falls off because of a failed pully your tachometer will stop working and you will need to pull over and turnthe engineoff before it overheats and blows up.
Have the driveshaft looked at first.
You know that you MUST use premium gas, right?

 

Thanks for all the advice and suggestions...I will be busy this weekend. Any of you guys know of a site that provides any pics of some of the parts you guys suggested to check/repair? For example, I tried to look on the net for what the u-joints look like, but no luck.

 

Here are some pics that can help identify some parts. Here's my re-built drive shaft before installation. You want to look for the little silver zerks circled in yellow.
Drive shaft
Closeup of the zerks
Drive shaft label

The CDL DiscoMike mentions is another thing you should look for while inspecting your driveshaft. Look for it on top of the transfer case.
CDL nipple