It's funny you should say that. I've been having problems with the starter for a few months now with it either just clicking or failing to start the car when I know full well that the battery was fully charged.
Also, the mechanic was surprised that none of the fuses blew and if you say that the smoke was coming from that area then this gives me hope that I might be getting closer in tracking the problem down. Perhaps I can't find any smoke damage to the wiring because it was the starter itself that was causing the short circuit and was smoking.
I changed the alternator because it simply stopped working and I was, for a good few weeks, running the car on battery power only and having to charge it up myself every night.
Thanks for this, I feel a bit more positive now