My Panic Attack Solution

This is from a case study:

James is a healthy 33 year old who believes that an unpleasant smell surrounds him he is fearful that others may be able to detect the smell.

The smell emanates from his genital region, persists even when he has showered and smells like burning or decay.

He has frequent panic attacks centering on his conviction that he is a hypocrite. He knew himself to be a sham who’s real feelings were tied to fantasies of sexually sadistic behavior. He believes it is just a matter of time before people find out about him and his secrets.

He believes others can read his mind, becoming aware of his evil thoughts, and can detect his smell. (thought projection)

There are large impacts on his life he feels safe as a stranger, because he believes that people can not detect his real nature when he is anonymous, he drifts from place to place job to job.

So I think:
Paranoid schizophrenia, (Axis 1)

Maybe social anxiety disorder (Axis 1)

Help what do you think?
He is definitely co-morbid probably axis 1 and two DSM 4

I agree with your first guess, I think its schizophrenia also. That is what I would have guessed.