Ok, I think I have a fix now.
I downloaded Net Framework (cause directX tweaker requires it) and then ran directX tweaker. Made a new project, linked it to the SH3.exe, selected Force Shader FP and started the game using the start button in dxtweaker and it was fine. Nice black smoke again.
I understand TT is looking at modding the smoke some more, so looking forward to that too now...
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