I recently had a brake shop replace everything on the rear brakes. About 200 miles I stopped at a red light to have smoke coming from the left side of the wheel. I looked where the smoke was coming from and noticed it was coming from the drum. I removed the drum and found a bunch of dust.
What my main concern is the axle, is it suppose to move in and out about an .125? 1/8th

 

There is a little axle movement in and out. The smoke sounds like you might have a brake shoe hanging up; adjuster not set up properly maybe.