when i called the guy i bought it from and told him the car was still smoking, he asked me to check the AMM turbo hose that runs under the heater hoses before it connects to the turbo, he wasnt sure if he tightened that clamp all the way!....turns out the hose wasnt connected completely to the turbo, as the heater hose dripped fluid it evaporated and the turbo was sucking all that back through the exhaust system hence all the smoke, i replaced the heater hose. BUT when i unclamped the old one from the firewall a couple of the o rings from the coupler came with it. i stuck them back on the new hose and plugged it in, listened for the "click" and was back in business. when i drove it about 20 miles the hose popped out from the firewall. so i went to the boneyard and dug out a coupler from another 850 took it home and pulled the o rings out of it, the ones on my car were stressed by this time, it seems there is a sequence for those four o rings,
1> thick hard black
2 softer rubber black
3 hard yellow
4 softer rubber black ( the same as #2)

The first time i put it back together i put the hard yellow o ring on last, i guess thats why the hose popped back out. my thinking is now that the o rings should not have come off the first time i pulled the hose out, so my coupler is compromised, im hoping i luck out, its running great now, especially after having replaced a couple of cracked vacuum hoses connected to the sensor on the airbox, no leaking, no burning oil. if this doesnt fix it, ill just buy a new coupler and heater core and pay him to fix it, replacing the heater core and coupler, even if i have to pay for labor seems like it maybe enough hassle to get my revenge for buying a car with a faulty radiator and trashed out struts