Generators make electricity because the windings are full of smoke. When the smoke comes out they can no longer make electricity. In that case You need to send it to a rebuilder who can put new smoke in. On a more serious note, what was smoking/burning? Was it the armature [part in the middle that goes around] or the stator [windings mounted to the housing] There are actually 2 sets of each, the little one on the end is the exciter, the other larger one makes the welding power. I might be able to give You some guidance if I knew which parts got hot. Did this machine ever work since You have it? If so what has been changed, modified, taken apart and put back together etc. Once hot enough to flame the parts will need to be rewound, as the insulation on the windings is a varnish, and it has burned off. This alows the windings to short against each other and the part they are wound around.