I haven't had the smoke issue that you've had, but aside from that I have a very similar problem. My parking lights work in the parking light position, but my headlights don't, and neither do my parking lights in that position.
I'm curious to know if you solved your problem, and what it ended up being?
Personally, I took my car into a shop at the beginning of july, where they claimed to solve some electrical problems for me. I haven't driven the car at night until recently, and I don't know if the lights have actually worked between then and now. The shop is not as reputable as I thought it was and I won't be going back there. I'd like to avoid going back to a shop if possible.
Thanks,
jimbo