How to make smoke

I found nothing in the Rules about smoke creation.
There are a lot of different templates and i know that smoke creation is a special order. but how do you handle it....which template should i use????

You can use the triangle shaped template in the counters & templates file. It is the grey one with all the bad Word-shape smoke on it . The little tentacle extensions are meant to be folded so that the template is above the table and can be placed over any mini's.

oh would have never guessed right how it works...
But that gives a really long smoke cloud for a little ship....seems a litte stupid that if you move only 5cm you can create a smoke wall 20cm behind your ship...shouldn´t the smoke be as long as my ships movement?

Well, that is kind of a design issue. A DD can move 20cm per turn, 30cm if you use the Flank speed activation. Then there are the effects of wind and weather.

Everywhere I read about smoke there is an acute danger involved, or a direct need to break off the action. Having a DD spend 3 or 4 turns putting down a decent smoke screen is not very useful in gaming terms since 1 or 2 turns might be enough to decide an exchange. In the game situation (small playing area etc.) it is also much harder to get out of reach of your opponent than in reality. So I decided that once you deploy smoke (and spending order tokens on it also) it better be useful.

Ow, and I usually play 1/1800, that might cause some of the scaling issues perhaps? I can imagine that it is a massive cloud if you play 1/3000 or 1/6000. How does it hold up in your games? It is of course a double-edged sword since your own ships have a hard time seeing and shooting through smoke also...

we play with 1/2400 GHQ models.
Yesterday i laid my first smokescreen. to my surprise the length of the Smoke template seemed to be right.
So i would say that your smoke rules are working very good.
I like your idea of gluing cotton to the template to make realistic looking smoke...will try to copy it