Stubborn starting question...

A smoking ballast is probably not a problem. You should not leave the key "on" for long without engine running, it will either cook the points or the coil. The ballasts DO run hot, and even a little oil / grease from your fingers is likely to cause some smoke and smell.

Make sure you have a compatible coil. Download a service manual. The coil and ballast resistances are back in the "specs" in the electrical section, Chapter 8