Is the idle speed around 1100 1200 RPM? Anything lower and it'll sound like it's coming apart. Also, try pulling in the clutch lever and see if that changes the sound. The clutch baskets are known to knock a bit at idle sometimes. Adjust the cam chains, they make all kinds of noises when they're out of adjustment.
The smoke could be from oil getting by the rings, valves, valve guides, or seals or maybe it's just burning off some oil that accumulated. Has it been sitting along time? Is the oil fresh? A compression test will give some idea of the internal condition of the engine. The smoke and rattle could be a busted ring or piston, so you may want to check the compression first before you run anymore.
89 VN 750A - Given to son-in-law
79 CB 750K-sold 3 May 21
78 CB 750K
77 CB 750K
77 GL 1000 x 2
77 CB 550F
Holton, KS, US