Well Pontini, actualy I had to combine 2 things to get rid of the smoke when braking:
1-use a decent set up to the car (adjusting the brake bias)
2-learn how to brake with the keyboard... this is essential... tap the brake button on and off, and before getting into the curve, GENTLY tap the gas button, just the enought to keep the revs high... practice this a few times and tell me if it worked for you.
I don't know if changing the phisics on the game works, but maybe I'll try it to fix the Monaco hairpin issue...