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Just took the engine cover off my HDi, to find a bit of cloth stuck to the engine, some oil around the engine, so its been like that since I bought the car in Jan. Dunno where its leaking from as I dont wanna remove the cloth incase it pisses out or I find a cracked engine.

Would that give me the problem I'm also having at 100mph where the speedo drops to 60mph even tho I keep me foot in there is no loss in engine power, but the brakes and steering feel wierd. Just wondering if that would happen if a drop in oil pressure or whatever?

You ought to get a pic of it up here, but a bit of rag will not stop an oil leak.

From the rocker cover there is a black rubber hose (like a radiator hose) that drains oil back down to the sump, mine has a bit of oil residue where it connects to the rocker. It could be coming from here, if it is it will just be a case of inspecting the hose connection and checking for splits in the rubber hose etc.

There won't be a crack in the engine to let oil out.

Lastly, are you sure its Oil and not Diesel?

I cant take a good pic of it with me camera phone. I've just cleaned it up a bit and will see if anymore appears. Dunno why they was a cloth down there tho, but will have a look later after I've had a drive. Might just have been dried oil melting with the heat as I lost half the oil when the oil cap blow off twice a few weeks ago.