Did you get any grease on the rotors when you did the brakes? That could cause it to smoke, but i wouldn't think the part about not releasing.

Both symptoms lead me to think either the hose problem Jon (prerunner1982) was speaking of, a caliper locking up, or grooves worn into the knuckles binding the pads upon trying to return after breaking. The grooves are an easy thing to find out by inspecting the knuckle. Although, you can surely have the grooves and that not be your problem.

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