[theWeezL]

While the smoke could be from the powersteering fluid burning off on the exhaust, it wont effect your preformance.

Perhaps you have two different problems. Are you losing oil or water? is your oil milky? are you getting white smoke out the end of your exhaust? If you answer any of these questions yes...you have a BHG. however if you answered no to all of them, then you have a more preplexing proplem.

You say you see smoke out from under the exhaust manifold shield? Have you tried taking this off to get a better look? The lack of power may be a completely unrelated issue, but start with your outward signs and work it from there.