Smoking engine

There is a definite possibility that you fried a few seals, those turbos have a reputation for dying as there location exposes them to a little more heat than would be ideal. Was it smoking out of the tail pipe or from under the hood or under the car?

The tail pipe could be a variety of things, while under the hood usually doesn't have much to do with the turbos; while under the car is a VERY bad sign.

The loss of boost pressure is very troubling though, were you able to hear the turbos spinning up or was there a grinding sound, if you heard grinding you most likely destroyed one or more of the bearings in the turbos.