Fufps
Quote: "I made all the smoke files alpha texture"
Ok, glad that works for you, but remember any other weapon that need those decals wont have a smoke decal now

I still feel something else needs attention without having to do this.
Quote: "smoke puff left on objects I shoot at"
You mean the segment shards when shot at. That setting is in the segments .fps file set as the "materialindex=x"
If you set EACH "materialindex=" to zero ( 0 ) you will have no more shards/smoke from walls.
Segments can have up to 16 for a full room segment. This setting also sets the players footfall sound when walking on these segments.
If you go into your audiobank\materials folder you will see all the sounds for a segment.
You can also make your own walls/segments

Go to fpsfiles.net
http://www.fpsfiles.net/
Grab a copy of FirmaV2 from the tools section. It is very easy to make your own wall or rooms with this program.
This way you can have control over which segments have no bullet shards and which do? ( keep your stock segments un-changed )
Also at this point, is your hand even a weapon anymore
My games never have bugs. They just develop random features..
Lots and lots of random features...