Discovery 2 in desperate need of TLC

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Erm, how does oil get into the clutch from the valve cover?
Won't the leak more likely be the rear main oil seal?
You may well have a valve cover leak - or a diesel leak from the regulator - but I don't see how it gets into a sealed bell housing.
Because the oil runs down the back of the engine thus betwixt the bellhousing and engine block
 
And I don't think a contaminated clutch will burn off the oil :( You'll need a new clutch.
On the plus side, while you're doing the clutch you can probably replace the oil seal that is leaking. :)
The chances are slim but if I stop the root cause of the contamination it can only get better, get some heat in it
 
The chances are slim but if I stop the root cause of the contamination it can only get better, get some heat in it
It's an even slimmer chance that a bit of heat is going to clean up an oil contaminated clutch plate. If it slips enough to create that amount of heat then it's time to get the box off the back of the engine and replace it, including everything else that might need replacing too.
 
Lee,
you may well have a leak at the top but I think you have to accept that it's not your biggest problem.
As far as I can see, oil in your clutch only comes from the engine through the rear oil seal or from the gearbox.
Either way, you're gearbox needs to come off and the clutch needs to be replaced.
Only then will you see what's leaking and fix that too. My money is on the rear seal.
 
IMHO, you would really want to go into the bellhousing once, so I would be prepared to replace the lot. The clutch friction plate and release bearing would be the first things to replace, but you're going to have to get the flywheel off to replace the crankshaft oilseal so consider a new dual mass flywheel too. If you're going to go that far, then I'd be replacing the clutch pressure plate assembly and the release arm too.
 
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