Well I got it all wrong. Just got a call from the dealer. Burning smell comes from the valve cover gaskets leaking again! on the exhaust. The groaning noise I was hearing when turning was coming from the CV joints. They said the CV boots were cracks and the joints are worn although the last time I checked the CV boots 4 months ago they were ok. Anyway, everything should be covered under the extended warranty...pfeeeww!
I took the extended warranty on both of my BMWs the X and my daughter's 3 serie and on each of them so far I would have spent 4 or 5 times what I paid for the warranty. Bottom line, do not go without a good extended warranty with these babies.