Smoke is located in the Living Forest. There is an area with a river running through it. Jump across the first section of the river to find a living tree and 4 clay statues in front of a stone structure. You must throw one of the clay guardians into the wall to break it.
This will open Smoke's area.
Smoke Mission 1:
Go to the Soul Tombs. Now go through the door with the green mark above it.
You will have to fight Tarkatas.
Throw them into the back wall until you reveal a full fatality code made of stone.
Smoke mission #1 is complete.
The best way to throw them the Tarkata is to run at them and grapple with black, then hold the analog stick in the direction you want to throw. This keeps them flying low so they are less likely to be impaled on the roof.
Now return to Smoke.
Smoke Mission 2:
You must find the Warriors Arena. Backtrack to the first area when you started this stage. A bridge was destroyed the first time you were here. To the left of that bridge is a ledge to jump to. Follow that path until you see statues that require the fist of ruin to break them. Break them and move to the next area.
Smoke mission #2 is complete.
Return to Smoke.
Smoke Mission 3:
Go to the soul tombs. You will see a cut scene showing a new room. Go into that room. Do not kill ANY of the Tarkata! You need all three to sacrifice.
Throw 3 Tarkatas in 3 different torture devices.
Smoke mission 3 is complete.
Return to Smoke
Smoke Mission 4:
Go back to the portal area by the Evil Monastery. Throw a guard into the purple portal located there.
Now go down the ramp to the area below the wall that leads to the soul tombs. Throw another guard into the purple portal.
Smoke mission 4 is complete.
Return to Smoke.
Smoke Mission 5:
Smoke will open a portal. Enter the portal.. You will now have to battle enemies on top of the Pit 2 stage.
Once completed, go back through the portal and talk to smoke to unlock Mortal Kombat 2 from the Kontent menu.