UPDATE:
Not much of an explanation... but I guess it's good news.
The dealer called me this afternoon and said my tractor was ready.
I asked him what they found causing the smoke and loss of power, and he said it was my air filter.
He said it was pretty much completely blocked with dust, pollen and grass.
I have no idea how this would cause the problem... but at least they did not discover any major problem.
Other than a fan belt which was dry rotted, all they did was the "tune-up".
This was the fuel filter, oil filter, oil change, check and top off all other fluids, adjust clutch. This was all done wiht ther fall "Special" price of $275... plus the cost of the new fan belt and pick up & delivery charge of $155.
Totalled up to $500. They were going to deliver back to my house today.
So... not too bad. Very quick service.
Now I just have to drop the mower and mount the FEL and rear blade. I usually dont' swap the blade out for my snowthrower unless they are calling for some major snowfall. ( 8" + )
Thanks to all for your idea and help... I'd still like to know how a clogged air filter caused the problem though.
Tim