Nasty Wendy Isn't
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First, there is no such thing as a stock header gasket. They did not come with gaskets and many of us just check that the header surface is still flat and install with a very thin coat of high temp rtv. If you can get a wrench on the header bolts, then you don't need to pull the downpipe off the turbo, but I have found it easier to remove the turbo and thus the downpipe just to make it easier to position the header without the weight of the turbo. If you used the "slotted ends" felpro gaskets, it makes it easier to get it lined up, install the two end bolts, and then drop the gasket it place.
As Steve says, these engines never came with gaskets. Over a gazillion heat/cooling cycles shit warps. In a perfect world you'd bolt them back up without gaskets. If they're dead straight then you're good to go. The cheapass Felpros with the hooked ends swap out the easiest if they ain't straight. Pull the downpipe out...and while you're at it pound out the shit in the convertor. The turbo will spool faster and your throttle response will be crisper. Yank the turbo off it...and you'll notice the flange on it will likely be pitted. RJC sells a nice Scoob approved gasket for it. The two nuts on the crossover on the DS are a breeze to get at...the passenger side...not so much. When you snap the exhaust studs, hit your local muffler shop up to remove them and get them to set you up with the proper studs and nuts. Scoob has an engine removal vid from underneath what has to be done. Dan and I had a DS header warped so bad we cut the flange to get it to flush up.
Won't hurt
If your DS header still has the heat shield on it, it needs to be removed so you can weld the crack up.Are you sure the smoke isn't spraying onto the junction from underneath the shield?