Hey Jeremy,
As far as the wiring on the dimmer switch, the I terminal should have a black (12v from headlight switch) and black w/yellow tracer wires. The R terminal should be a tan wire and D terminal should be yellow wire. Does that differ from the wiring on your dimmer switch connector?
As far as smoke, that usually happens when the dimmer switch resistor coil separates from the ceramic tray and touches the circuit board. I have burned off boards where this has happened. The coil will glow red hot when backed off of the full on position because of corrosion to get the dash lights to work. If that was the case, would explain the smoke.
But first, let's make sure the wiring is correct before going any further.
Jim