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I just finished having this problem with the super beetle that I built an engine for. I am guessing that the smoke came from your generator. I recommend replacing both generator and Voltage regulator then make sure you "POLARIZE" the generator before starting the car. I threw away 90.00 on a rebuilt generator by not polarizing it. Look around the holes of your generator for any discoloration to verify that that is where the smoke came from. It sounds exactly like my problem though. You might try replacing the regulator and hope that your generator is still good before shelling out the big bucks for the generator. Boyd Drew