This is because the two stroke engine have back up oil which normally enters the fuel chamber to lubricate the piston. In transmission fluid case, the engine is sucking the fluid through a vacuum hose , which leads to the color white from smoke. The exhaust will also have a burned oil smell. The starter is stuck or apparently engage replace the starter to eliminate your problem.

Itr only takes a small amount of oil to get some smoke , white smoke is coolant, gray smoke would be. Diesel instead of gas? Top Reasons Your Car Is Smoking Out the Tailpipe - And How to Diagnose Them - Duration: 9:22.
So I was driving the jeep around to pick up the kids. What I seek advice on is: do you think the starter is the root cause of the continually weaker cranking symptom and the puffs of smoke were its dying breath, - or - could the starter be caused to smoke (thus ruined) and fail to crank if some other part of the start circuit is faulty (eg. battery or starter relay?). You may commonly see white smoke coming from the exhaust on cooler days upon starting.
This is likely due to steam created due to the engine burning off the condensation. Dean, 5woil is fine, Some white smoke at start up from cold engine is fairly normal and will dissipate (stop) for the most part after engine and exhaust has warmed up to operating temperature.
