I emailed the dealer and this is the exact response: "The smell is completely normal. When the scoots are new, there is a product called cosmolene that is sprayed on the machine to keep it from weathering while it is crated. It will burn off and be good to go. That is the smell of a new machine!"
As for the smoke, it is just whisps. Nothing crazy. So I think I will be ok. Thank god for two year warranties.