Alien Skin Eye Candy does smoke, but it is more than a bit naff. (on the left) Best way to add smoke to an image is with custom brushes. Google Photoshop smoke brushes. You'll find heaps, and they are way better than anything you'll make from scratch. (on the right) The sort of smoke in your example would be found by search Photoshop cigarette smoke.
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Corey Barker did a tutorial on creating snow using 3d features. Watch that and it may give you some ideas on how to create that smoke. The lower right side looks a lot like his tutorial. The middle section looks like multiple toruses. I think with the right use of blend modes and opacity settings, you will get close.
i ended up using smoke brushes. thank you sir
A very interesting effect is to paint your smoke brushes as white on black and then create a blank layer above. Then create a variety of colours on that new layer (either by using a variety of sizes of soft brushes in different colours or by using the gradient tool). After you have done that then set the new layers blend mode to colour.