Magnetos are self powered devices. If power is put to them (which is what made the smoke), they can be damaged in the following ways: Either the points inside the mag are toasted, or the primary windings in the mag are toast, or (hopefully) a external wire got hot and smoked. If connected correctly, the switch used should be a grounding switch. This would be closed when pushed in, (not like normal), and have its other terminal sent to a good ground. Thus when pushed in, it grounds the mag primary, stopping spark.
If all small wires are removed from the mag, and it still has no spark. it needs to be repaired internally. (if you are not friendly with geared mechanisms, and setting and diagnosing electrical systems, I would have it repaired. Magman on this forum does exactly that for a good price.
There should be no connection between the charging, lights, and battery systems, and the mag. It is stand alone. Keep us informed! JimN
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