If he did not do anything about the two 16 ohm resistors in the MTH smoke unit, I can tell you for SURE that's too much current for that little triac without any heatsink. The triac is rated at 4 amps, but that's with a pretty substantial heatsink!
I'd suggest you start by measuring the resistance across the resistor leads with them disconnected from the locomotive wiring. If you get, as I suspect, 8 ohms or close, take the smoke unit out and remove one of the 16 ohm resistors that are wired in parallel. That should drop it down where the triac won't be working too hard, though I suspect it's still going to get pretty warm. However, you'll cut the power in half, and of course you'll be getting a lot less heat to produce smoke.
Remember, MTH runs this thing at 6 volts in their locomotives, and they get pretty impressive smoke output. Running it at 9-10 volts will indeed produce a **** of a lot of smoke!