One at a time - The smoke was probably clutch fluid on the crossover exhaust
pipe. The squeeling noise is the now-wet clutch disk. Sounds like time for a new clutch and slave. You may even have a larger leak in the hydraulic tubing, judging from your description of the "soft" clutch pedal.
------I have afew pictures of the engine/trans in a frame, and the frame it self isn't too close to the clutch area, but doesn't the brake fluid harm the frame eploxy? John
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