Oak fungus

Johnny G · August 29, 2012

I came across this chap on an oak tree that leans over a rather expensive looking out building, pic 1 shows a red fungus that looks a bit like some very poorly testicles, its formed about 6ft up the stem above a hole. On the other side of the tree on the butress there is an hole developing. Covering this hole there was what looked like spiders web covered in a brown/orange dust, it stank when prodded. The crown of the tree looks very thin and there are several holes all over.

Any ideas what it may be?