Well I just replaced it. It was worn and a little loose. But the sound continues!!!

I drove down a bumpy street and stuck my head out the window as far as I safely could and it sorta sounds like it's coming from the middle bottom of the car. It could be my ears playing with me. It only sound when the back drivers side tire hits a bump. I did notice a pool of water? oil? on the bottom of the shocks. Maybe that's it. Do they make a horrible "clunk, clunk clunk" noise when they fail?

Thanks everyone

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1984 300td euro turbo

Here's a video of bouncing the rear of the car. It's not as loud as when I hit a bump http://www.youtube.com/watch?v=FBPKr_u56ac

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1984 300td euro turbo

Wow - I hate to get into the start replacing parts game. That sucks!

If the shock looks wet - its toast. They are filled with oil and that dampens the bumps - when the oil leaks out (usually from rust) nothing slows it down and the piston hits the stop inside the shock making a loud clunk.

Midas baby!

Ok well I'm back trying to figure this noise out. So after having my girlfriend drive the car and watching/listening, it sounds like the clunk is coming not from the rear wheel but a little back from the center of the car on the driver's side.

Are there any bushing that I should look at? I'm afraid it might be my rear struts (looks like it's wet in there). If that's the case, how much harm would it do to the car if I keep driving it with bad struts?

There's 2 videos I've posted. 1st post and 17th post.

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1984 300td euro turbo

first thing to do is just get out your floor jack, jackstands, wheel chocks and just get the rear of it up and get under. You already stated in one of your posts that you have seen a liquid in a pool under the rear of it and have seen "wetness" on the "shock" (or was it both)? Anyway, you said it is a TD? A wagon? Those have hydropnumatic suspension struts and it kind of sounds like one of those is blown and one tip off is leaking fluids. Just my best guess based on your info and listening to your soundtrack since I'm not there in person, that's my best guess. Also while you are at it, check out the mount on the back of the differential (sic?), there's rubber in the center of it that can wind up all chewed up allowing a lot of slop and clunking sounds which might sound a lot like they are coming from the rear and center of the car.