Apparently no one reads the suggestions given by Gran Turismo 3 in the Car Settings menu under the Limited-Slip Differential(i.e. the scrolling line with words of wisdom from the makers) on the tire smoke issue. "When accelerating while turning out of a corner, if the inside tire spins and spews white smoke, strengthening the limited-slip's acceleration side can reduce wheel spin." Same thing for decelerating while turning. Basically the inside tire has less far to go compared to the outside tire, but it's still spinning at the same rate as the outside tire, causing tire slippage. In most street cars the differential is set up so that the tire that is easier to spin is given more power, during normal driving, this would be the outside tire. However, when you're cornering hard, the car leans toward the outside tire putting more weight on it, and while doing so, makes it plant firmly. Quite the opposite happens to the inside tire, however, as weight is relieved from its side, causing less traction and possibly even loss of contact with the road surface, letting that wheel then spin. This is also why it's hard to get out of snow with a regular differential, and a little easier with a posi-traction differential.