nssndrvr

Last Friday I noticed a puddle under my car. On checking I noticed that the Power Steering reservoir was empty; all the fluid had leaked out. I didn't observe any symptoms while driving, and given the amount of fluid that leaked out, it seems that the leak started very close to home.
This morning I refilled the reservoir (with Dexron III) and took it to the mechanic. He had a look and said that I need a new Power Steering Rack. On my way back, as I had nearly reached my house, I began to hear a groaning sound and noticed a stiffening in the steering. When I pulled under, I popped the hood. I noticed a burning smell (oily) and light smoke.
My questions: Can I drive the car in this condition, without power steering fluid? The fluid seems to leak out quite rapidly, (although the reservoir wasn't totally empty when I returned.)
As for the smoke and smell, what is the likely source? Oil dripping onto hot piping?.
As for the diagnosis, any concerns, or does it seem spot on?

I'd appreciate your feedback.

SPEEDO

can you tell where its leaking from?? is it the rack or a hose? driving it with out oil can burn up the pump which leads to more $$$

nssndrvr

It's not any of the hoses. I was hoping that I would just need to have a hose changed, but that was not to be.
The leak seems to be at the gear unit itself.

SPEEDO

if it is the rack try a this place www.jorgenauto.com they have re-man racks....

nssndrvr

Thanks. I'll check it out.