Burning oil smell is the oil burning off the exhaust manifold where it runs after leakingout from the valve cover gasket or filler cap gasket.
If your is like mine, the oil is fairly clean -- no black spots in the drive, but there is definitely oil there.
I'll bet when you take the valve cover off, the gasket will be rock hard and cracked along the sealing surface, allowing oil to dribble out. Also, the filler cap is probably leaking too, it needs a new gasket, or a change to the new style black plastic one.
This will surely reduce your oil consumption considerably.
1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!