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If by "quite a lot of smoke" you mean enough to cover the rear bumper, it's probably the oil separator. That may be causing your flat spots too. Do a search on "oil separator" here and at renntech.org and you'll find several threads on it. One of them has a picture of what to look at to see if it's the separator.
If you are getting a lot of smoke, no matter what's causing it, you should not drive it anymore until you figure it out. It could be deadly to your engine.
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1987 928S4 Silver Metallic (980)/Navy (TP) 5-Speed
2000 Boxster Speed Yellow/Black 5-Speed
1966 Wife White/Brown Top
1986 Daughter White/Brown Top (Sold!)
1992 Daughter White/Blonde Top
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