Had similar story when I was learning how to drive. Redlined and dropped clutch on hill (I had no clue what to do) at 2 AM. Needless to say, cloud of smoke appeared, and car was towed (just 2 days after I bought it). It turned out to be just a glazed clutch. About 750 mi of driving got it back to normal.

 

When I was learning to drive a stick in my friend's Jetta, I accidentally reved it to 3-4k RPMS and dropped the clutch... HUGE cloud of smoke as well as a loud tire screeching noise. I burned it out pretty good, and I never even meant to. I never really learned to drive stick well from him, I pretty much had to re-learn when I got my A4 (but I had only had one session, for about an hour, and that was about 4 months before I got my car).