Well, howdy to Huntingtown! Smoke inside the headlights isn't good...could indicate a headlight about to die on you. I've seen this happen before and that's always what it meant for me. As for the fuel gauge, your sender may not be working. If the sender and gas tank don't have a good ground, the needle will go to full. If you ground the circuit and the needle goes to empty, it suggests your sender is not doing what it should. The sender registers resistance...that's all it does. Measures the resistance between the gauge and ground. 0 ohms resistance is going to give you an empty reading and 30 ohms resistance is going to give you a full reading. If you look up in tech tips (at the top of this section) there is a well-written tip on testing your fuel gauge/sender there.

~ Jon
1952 1/2 ton with 1959 235 | T5 with 3.07 rear end