Was out yerterday and started to hear a clank from my front drivers side tire area whenever I would press and release the brake pedal (1983 300SD). When I got home I pulled the tire and saw a defect (small indentation in the sidewall). The tire would not stand up if placed on the driveway. It would immediatly fall. I checked the front end and everything seemed tight. I just put a number of new parts in last summer.

Could the bad tire be causing this? Would it have an effect on the braking to such an extent that it would make a noise when the brakes are applied? or should I be checking something else?

Any ideas?