I installed a 3:42 LSD from a 4th gen into my 85 camaro.

On long corners, like a highway on-ramp if I give it any gas smoke starts coming from the rear of my car. I'm not sure what it is coming from. I don't feel any traction loss, like it is smoking a tire.

Do rear ends ever smoke, or is it just tight and locking the wheels?

 

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The tires are probably rubbing on something when you put a side load on the suspension. Remove the tires and check the frame and other areas under the car for signs of tire rub.

 

did you put the panhard bar back on?

 

I did put the panhard bar back on.

I also had to put my stock springs back on the rear & some bumpstops which where missing. (i noticed that on the first drive with the rear, the tires would hit the fender lip on corners)

I don't feel any vibration when it smokes, like the vibration I felt when the tire was actually hitting the body?