strange, never had any smoke. yeah, inductors are bad. any inductive resistors are bad. In fact, carbon comp resistors seem to be best. Anyways, lots of tweaking potential here. For example, I bet Kerry could really improve his supply by adding a RC on the secondary to help with the cap recharging noise you pointed out. Haven't tried the 10uF cap on the mains side that John Curl seems to think is necessary, but soon enough.