I would definalty advise changing out to electronic ignition, try Pertronix, they make an easy kit. as far as the smoke goes, check the choke, make sure its not staying on. Check for voltage on teh choke coil adn make sure the coil is grounded. Remove the flame arrestor and check the choke flap position. Most people set them up tight to make sure they crank easy, I prefer to set them on the loose side to make sure they don't load up the engine. You adjust the choke by loosening the three screws on the choke coil cover, and rotating it. If the choke looks ok, you need to check the carb out, with the engine running at low rpm, look down teh carb throat and see if you are getting a lot of gas dribbling into the engine. You may need the arb rebuilt
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