Oil leak
 

i've got a 92 xj with the 4.0l high output motor (i-6 MPI) and something is up. I smell clutch and oil sometimes after driving it and i'm quite sure it's not a user error.
My original guess was a piston ring or valve because i had some irregularities with the compression and there was burnt oil residue on the spark plugs. however a friend of mine told me about another, more likely, problem. it appears that my main seal is the culprit and is allowing oil to leak out and soak the clutch, which would explain both smells, and the "compression irregularities" i might have confused for clutching irregularities caused by the oil soaked clutch (i.e. gripping, slipping, and just generally acting weird). has anyone had a similar problem, able steer me in the direction of a cheap-ish fix?

some other history that might help:
i drove it from CO to NY last summer and it didn't burn or leak a drop doing 85mph all day long. it had 201k on it then. On its way back something happened with the clutch. all fluids looked good but it felt like i had to push my foot through the floor panel to get any action from the clutch. pumping it repeatedly for about 5 minutes fixed it. however, since then i've smelled the "clutch/oil". not sure if the two are linked. there is a also a suspicious fluid splashing up and running down inside my cold air intake. it looks like a dark gray, ashy residue in a thinner, yellow liquid.

the oil soaking my clutch is the big problem but i wanted to include the other details in case they help diagnose the problem or indicate multiple problems that need to be addressed in order to make a good fix. thanks

I belive the 92 with the AX-15 has an internal slave. Might be the slave is leaking and that's causing your problems.
I've never dealt with clutch city so I can't vouch for them but I found this link:
http://www.clutchcityonline.com/products/01-034.shtml