Im not sure what is wrong with it exactly but when i make sharp turns its starts smoking out of the engine. I have tried putting power steering fluid in it but it still has the same problem... Any suggestions?

 

I would recommend putting your car on a lift or jack stands, and checking the hoses leading from your power steering reservior, to the power steering pump. Somewhere you have a break or leak in the hose, this is causing the fluid to be sprayed on to the exhaust manifold causing smoke.
http://www.realoem.com/bmw/showparts.do?model=RE33&mospid=48021&btnr= 32_1267&hg=32&fg=20