use to tow with a 300 tdi 90, but got fed up of competing all day and then getting in a 90 to do a 100 or so miles home.
Upgraded to disco 3 TDV6 which I then chipped. Tows lovely, very smooth! infact as im sure Boothy has the same problem with his Nissan you forget your towing then you see the speed your doing and have to back off! Also lovely and comfy, climate control etc... and heated seat to get some warmth back in you after a day or 2 playing!
averaging between 20-24 mpg while towing.
Also towed across Europe twice in a land cruiser 100 series, also a fantastic place to be and effortless towing.
The disco's are getting around the 10k mark for a low end spec one now.
As Mark says the LAW are getting wise to all the old tricks now so be sensible, even if you don't get pulled if you have an accident or something?
Dan