Here's a link for a reman'd Denso alternator for $184 after core charge is refunded. Buy it, have your shop put it on and give you the old alternator back so you can get your core charge back. The grinding noise means something has been knocked loose in the alternator itself. The smoke means that something has created enough friction to create a lot of heat. I'd replace the alternator asap. The Denso model is the OEM part, but I don't think there's any harm in going with the Pure Energy or USA Industries model if you want to save $40-50 or so. Personally, I'd just go with the Denso. Apparently the alternator was changed for the 09+ models because the 06-08 Denso alt is only $126. It's also got a different part number.