burning oil smell going up hill in type 44

[Livolsi, Stephane]

I did a search of the archives and didn't find what I was looking for.
My car is 86 5ktq - all engine stuff is stock.

I've always had a burning oil smell when going up long hills. (I live in BC,
there are lots of long hills) and I had assumed that it was my leaky rear
diff seal leaking lube onto the exhaust pipe that is right underneath it.
Well I replaced the diff seal last weekend and it is all nice and dry.
Yesterday I  took it for a good long highway haul at good speed. Man does it
handle nice with the new front suspension bushings.
On the way home, there's a really long haul up a hill that I pulled up at
about 110km/hr and I started smelling the burning oil - REALLY STRONG!
Stopped at the rest area up top and popped the hood. I could actually see
wisps of smoke coming from the back of the engine, on the turbo side but
more around the wastegate area.
I remember reading on this list a while back that there is a common leakage
area.  Is it the valvecover gasket, or something else back there?
Also, realisticaly, what is the fire danger of leaking oil on a hot exhaust?
I'm leaving for a week long camping holiday on Saturday and would rather not
have to use my fire extinguisher on the car :<(.

TIA

Stephane