Smoke & Smell can be easily confused for heat - which sometimes is/sometimes isn't the case. Its common to have excessive smell on track pads as its the final part of the resin setting process. If you look at a set of track pads that have finally been persuaded to bed in properly you inevitably find a 2-3mm water/tide mark on the side of the friction material where the resins within the compounds have gone "off" stabilisng the pad for track work.
Its looking promising for these calipers, couple of installation issues which are far from insurmountable, which are not "engineeroutable" more to do with the differences in production of the caliper.
I had a pax ride in the car post installation and they did feel very very good even on OEM equivalent road pads. I didn't drive the car as Joe wasn't there but tried the pedal and it felt good. 36mm/40mm is a good all round piston combination on a Mk5