There are several messages on BrickBoard about neutral safety switches that smoke. The usual answer is to just replace the switch, but this does not stop the cause of smoking which is bristles and dust from the gear lever cover falling into the switch then getting stuck in the grease on the electrical contacts in the switch, resulting in a higher resistance path and subsequent burning & pitting, giving no conduction or intermittent conduction or complete destruction. The manufacturer has greased the plastic path and brass contacts that the copper contacts slide over to presumably extend life. Remove the grease to extend life - wear out will take longer than burn out! Do this by removing the gear lever cover (2 screws) and rotate it out of the way. Then remove the 2 screws holding the neutral safety switch (NSS)and lift it up to detach it from the gear shift pin. You might have to slit an inch of carpet so that the switch wires can be raised a bit with the switch. Slit wont show when all is replaced. The NSS has a galvanised iron rear cover with 4 clips holding it to the plastic body. Bend the clips back to remove the cover and expose the internals. Lift out the movable arm and degrease it. Likewise wipe the fixed contacts with a tissue soaked in degreaser. Put the switch back together and use multigrips to bend the rear clips back onto the NSS body. With the gear shift in neutral put the switch back sliding the NSS backwards or forwards so that its movable arm is aligned with the (neutral) line on the top of the switch. Finally, make sure that the gear shift lever is not "sloppy" or the NSS movable arm contacts may not properly mate with the fixed contacts giving intermittents or burning also. If you get a used NSS open it up before leaving the junkyard. I've had two NSS burnouts and my current NSS from junkyard has mild burning on reverse contacts.