Did you bed in the pads and break in the rotors? If you don't do it correctly, the pads will glaze over and not work correctly.
Aside from that, smoke is either a fluid leak (since you think you need to bleed, mabey there is a hole in the hose or a bad seal on the calipers). If it's from both sides, it's probably not one of those two, but bad pads.
-Jeff
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