So although I kept testing everything with my meter and it checked out, I tore into this engine again. I ran new wires to the smoke unit to be sure they weren't an issue. I carefully repacked the smoke unit and cleaned it.
I did notice something that may have been an issue. I didn't get continuity with my meter, but I believe it was happening anyways. That may help explain the huge smoke volume I was getting?
Even though I had black electrical tape there, the whistle mount stem inside the shell may have been touching one tab on the smoke unit. I noticed a tiny melted spot on the tape that seemed to align with this brass tab that's bent over inside. So I bent that tab flatter and made sure it wouldn't touch. I ran tape around the unit once more.
I reassembled the engine and now it smokes correctly. Well the volume is correct but now there isn't proper flow from the fan. I usually take more than one attempt to get the smoke unit packed perfectly. Enough wick to get good smoke and last, not too much to block the path.
I'm getting there anyways.