If broken rings are caught early, it can be confined to one cylinder and not yet generate widespread engine damage. A slight overbore, new pistons/rings and gaskets and the motor might be able to slapped back together and run for another 40K miles problem free... or you can look at a cheap crate long block for a little more $, but a lot less work/time.
If the noise is still there with the loose flexplate tight, the motor needs to come out.
Anyone on
This is the 2nd time you referenced advice from an outside source - you should stop listening to that source. I don't want to that sound mean or condescending, but that is the craziest thing I've ever heard.
You've confirmed the noise, it's a loose flexplate. The smoke needs to be dealt with UNGN has given you the 1st step to finding the issue. But now that you know the flexplate is loose, you need to get the trans removed and check the flexplate and crank bolt holes for the flexplate. Probably you can get by with a new flexplate and bolts - about $50 and your time and a 'knowledge gaining experience' at pulling the transmission. For an experienced guy with a jack and jack stands the trans removal is abut a 2 hour job - plan on the better part of day.
What's the oil and dipstick look like? And how about any coolant use? Is it low most every time you crank it up?
From there grab the new parts I suggested and now you can head off onto UNGN's recommendation. Take pics of anything questionable and ask - no one here will lea you astray.
p.s - to heck with having someone do it for you if you have a garage or level and smooth driveway. Keep in mind that you'll be able to crank the motor with the transmission removed for the compression test.
I agree, but I only reference outside sources to verify if there is any truth behind what they're saying. Thanks for the advice, I will be doing just that!