console question

so im trying to take out the console in my duster auto and i cant figure out how to get the knob off. i twisted it for ever and the button just rose. i dont know what to do i did it once and have fergotten how to remove it.

ALSO when my car isidoling for a while then i check the oil smoke or steam or somthing comes from the dip hole.....how bad of a thing is that?