Has anyone experienced a smoking engine which smells like burning oil? I have a 2005 4 cy Hylander. On hot days where I am using my air conditioner it has smoke forming under the hood. Something is dripping down behind the back wall of the engine area. I took it into the dealership and they found nothing wrong. I drove 20 miles today and it smoked all the way?? Puzzled what to do next.

Does temp gage read normal(middle of range) when AC is on? Dripping near back of engine is normal when AC is on, it's condensate water from cooling coil.

Well, all fixed apparently I had a leak in the Differencial. Actually several leaks. It all fell under the warranty so it didn't cost me anything in fact they gave me a rental. Very happy customer!