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the smoke could have just been from the voltage regulator, which IIRC is on the alternator. this is an inexpensive part and should take an hour or two to replace. i doubt if anything in the fuse box is melted, but you can check the main lead going to it and pull all the fuses to see if there are any blown. also, look for anything charred. you're probably ok with this one. for the price, i'll buy the car if you pass on it.
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john
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'98 E300 TD " Lukas" 156K 
'11 C300 " Mia" 10K, Gorgeous!, Wifey's Car
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