Help!!!

[Byron320i]

Right, last night just finished work and was driving home, the car started making grinding noise's from the back, i stopped and smoke started pouring out then dissapeared, so i pulled off again and there was the constant grind so i had to leave it parked up, n e way had alook 2day and filled up the diff and the fluid started to come out almost straight away from the point where the prop shaft joins with the diff.

Does anyone know what has happened and what to do to fix it?

Cheers

[97alpineM3]

The way you are describing it.. it almost sounds like your pinion seal has died.... and the bearing that rides behind that... if they both fail.. I'm pretty sure you'd get the rubbing noise.. and then a lose of fluid.... Not in the same order.. but you would be some rubbing sound and no fluid.