Check to see if your coolant level becomes lower after being driven,Then that's due to a blown head gasket.,and if smoke has a lot oil residues i would shoot for the same damaged area(combination of head & valve job).
Third gear and reverse only ?
You have a water leak on the intake man. or bad head gasket.
SOURCE: overheated 2000 vw beetle
does it sound like there is any compression. remove cover on the right side that covers t-belt see if belt might have broken. if cooling system failed could have blow fuse for cooling fans. causing overheating.
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