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Well after having the intake manifold off of my motor for the first time a couple of weeks ago, I was shocked, and somewhat dismayed, that in Porsches Infinite Wisdom they decided to put the power steering overflow "Reservoir" (and I use that term loosely,) in the top of the motor. (It's really just the casting cavities on the top of the block that fill with power steering fluid.)
So, some previous owner, somewhere along the way, stuffed a paper towel in there to soak all that up, I presume. And they left it there.
Now, I've had plenty of power steering overflow experiences myself at the racetrack, so I'm not blaming the previous owner. What I'm saying is, it could easily be burning power steering fluid that you're smelling.
Or any other of a host of things that drip, weep, seep, drain, Etc, on a 15 - 20 year old car.
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