1996 Chevy Monte Carlo Drive axle or transmission?

Heading down the highway there was a clunk sound, very much like I had ran over something in the road (I even checked the mirror). This was followed by a feeling of a flat, then the car jerked, and temp ran hot. There was some smoke when the hood was raised, no odor like with radiator or oil. Once the car cooled, it started fine (never stopped running actually). Placed it in drive and nothing, just sat there. It went through the gears just fine, no noise except a slight sound once it went from reverse into park and I almost thought perhaps it was linkage. I have noticed in the last couple of days that when started the temp gauge would go to around the midrange and the air blowing out would be cold. Gauge would go back to normal and the air would warm a bit more slowly than normal. No idea if that has anything to do with anything. There have also been a few minor vibrations that I attributed to low tire pressure and added air in the last week or so as well. Any help appreciated.