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If someone was really good they could use plastic figures of people, drill tiny holes in them from below through the legs/body and out the mouth to make it look like they are smoking. That could work for a winter scene too.
Structural firesCamp firesfactory smoke stacksburning leaves in a fall scene
Regarding the smoking cigarette, I believe Model Power has developed one with a LED or fiber optics that has a burning cigarette. To have a smoke unit would probably put out too much smoke.
Dennis
I put smoke units in dummy engines and then they look like powered. Also check out the Sunday Photo Fun. Used MTH smoke unit to make the smoke behind Don Baker's box car.
There was a guy on eBay selling cabooses with a smoking stack.
Jim
How about the Old Faithful Geyser?
You'd have to have a strong fan behind it to get good height on the smoke. Then you could set it up to go on every 3 to 5 minutes.
That would actually look really cool on a layout!