The smoke was oil frying on the engine.
It's a 3000$ car now and it will be still when you put a few grand into parts.
You need a tsrm and some new tools bro because you're going to be dollar billed to death until you can't stand it. Only to get it fixed and go again.
Mine is a 91 7mge. You have the more reliable engine. Your 626 and 2.5, It's a bit steep. But you're going to be upside down in it before you know it so you may as well start at the beginning.
Good Luck
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