I had the same thing happen to my 4 door 16v, was driving along on a main road, and it started slowing down, shifted down a gear, and still, in the end i was in first and i pulled over, got out and saw loads of smoke coming outa the front breaks!!! i left it for a while, and went to try move it, but i couldn't cos they were still locked, i couldn;t even get it to move in 4wd Low. n the end i had to take it to the dealer, and we had to change the master cylinder cos the valve inside were messed