If it's hitting the crossmember, you'll need to show this to your mechanic, see what he says, maybe have him call Stillen as well for further information about it, they may have recommendations on getting it to fit right.
The smoking thing is normal for newly-installed exhaust components for a brief time. You use an anti-seize paste on the bolts in the exhaust, and there will be some of it leftover exposed (on the exposed end-threads of the bolts, or on the bolt heads and flanges, etc), and it will slowly burn off and give a bit of smoke off. Should be gone after one good long drive, or a couple days of very short trips.
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