I am not familiar with the exact workings of the KM201, however the older models have two things that cause smoke or burning smell from the speed control circuit.
1. Models before electronic speed control have a large resistor which is designed to get hot and if oil or grease drops on it then it will be burnt off. This is not a problem.
2. (more likely) Electronic speed control models have large capacitors which are prone to fail, particularly after long periods of storage or no use. The components are readily available and easy to replace.
You might be able to see the problem if you turn the machine upside down and look into the base of the motor with a torch. The capacitors may be expanded or have burst open and the small resistors will appear to be burnt and have lost their colour codes.
Hugh, February 2009