donnalynett,
The 201 machine is well worth the money to to fix. They are excellent machines to sew with.
You didn't say which model of 201 it is, so in general if it's a -3 or one with an external belt driving motor they are very easy to replace. Wiring can be had as well.
If it's a -2 with the potted motor they are easily rewired and they use the same cord sets as the others do.
The smoke could also be grease or oil that seeped into the motor and was burning off. Did the motor continue running or did it give it up when the smoke started? I'd still pull it down and check the wiring considering the cords were bad.
Joe