You have described symtoms usually associated with two different engine problems. The knocking is generally a sign of a lower engine (Con rod or main) bearing failure. The smoking is generally a sign of oil in the upper cylindr/combustion chamber. This can be traced to rings and or valve problems in most cases. Unless of course a valve or valve spring has failed which may cause physical damage to the upper end. Any further attempt to start or run the engine at this point without a proper diagnosis could caus efurther damage. Did the eng stop running after the smoke was seen?
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