[icingdeath88]

There is a transmission fluid line that runs over the exhaust, it might have sprung a leak, sprayed fluid on your exhaust, causing the smoke, and then the lost fluid is causing your transmission problems.

Now, this part is important: If it's slipping, stop driving it, otherwise the slipping itself will cause damage to the transmission. Figure out what's wrong.

First, check the trans fluid level. If it's low, that's probably what caused your issues. The trans fluid lines run underneath the car, near the bottom, but over the exhaust on the drivers side, to a hard line that's attached to the bottom of the engine, then to the radiator, and back. The hard line and the rubber line over the exhaust are suspect. First check the fluid level, then check for leaks, especially in the line I mentioned.

Based on what you said about the smoke, I'd bet that's what's causing your problems. Slipping will cause transmission failure quickly, because of the particles that are released into the fluid when the parts rub together, they clog passages and whatnot in the transmission. If you do end up finding a fixable trans problem, then I'd be very sure to drain the fluid and replace it with some fresh synthetic fluid after it's fixed.