A while back I had a similar problem, may be related, read thread here if you want.
I've had it a few times now, I'll be driving along and the engine will cut out for half a second or so, and then come back with a big jerk. Which leads me to think that electrical power is lost for a split second. The battery I have seems to be slightly too short so I cut a lump of wood to put underneath it to raise it to the right height and my positive lead is now sitting exactly how it should, I was sure this had fixed it but it happened again this afternoon. I'm wondering if maybe it's a bad earth somewhere?
Not sure if this is related but went for a bit of a harder drive this afternoon and looked everything over when I got back, with it running. I can see some smoke around the cat (though it's kind of whispy rather than a stream like a leak) and even some in the engine bay from the gearbox area.
I did have a gearbox leak from the driveshaft seals and a leaky ram, both have been fixed by Carl. Could this be residual gearbox oil / power steering fluid burning off of somewhere when it gets hot? I'll take it out for another harder drive this evening and have another look, as after a while it stopped smoking. Which makes me think it's a fluid burning off on something hot rather than an exhaust leak. I have noticed a bit of a burning smell after harder drives since I got it but didn't think much of it as it's not that strong. I always let her warm up and by harder drives I really mean revving to 6k or so every now and then, I never really rag her like some of my friends rag theirs.
Sorry for the long post! If any pictures of anywhere in particular would be helpful, let me know.
Many thanks,
Matt
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1999 Astor Grey GTi-6 OEM+