I went for a short drive today and when I got back I found that there was smoke coming from deep down in the middle part of the back of the engine. I tool a flashlight but could see nothing wrong. It smelt like something was burning and the smoke was dark grey. It seems that I have been hearing a clunking noise lately but I am not sure. It is a 1996 Landrover Discoverywith 50000 miles on it . Any idea what this may be and how much it will cost me. I have attached a photo of the trouble spot. Thank you in advance for your help.
James Walsh.

 

It can only be one of three things, coolant, sweet smelling, electrical or oil. Look under the truck and see what is leaking.
The clunk is not related but should be dealt with ASAP. How often do you check/change your fluids and lune your drive shafts?