New noise, like a rubbing noise.

Your car is 11-12 years old, the rubber parts will get stiff and maybe crack. It sounds like you have a split hose or a leak since you see more smoke.

Check for leaks, read this "how to", it will explain a lot
http://www.myturbodiesel.com/1000q_how_to/multi/boostleaks.htm

Rodger, will try.

I have a bicycle compressor, but no air tank, is that OK? Couldn't see anything obvious today, with my luck it's under the car.

No, read the writeup and it should explain a lot. The air tank is needed because you have to be able to hear any hissing air leaks. If the engine is running or there is a scream air compressor, you won't be able to hear it.

Even minor leaks can cause a problem. This method will also let you hear it if it's under your car so you don't have to crawl underneath. But if that's where the leak is, then obviously you will have to get access to it. It's probably a split hose or a clamp came off.

First check for this and check for any error codes at your local parts store.

Okay, see air tank? It's all you need. This should be able to hook up to your bike compressor and store enough air and it's only $20. You really need to have silence and an air nozzle to do this test, and it can find leaks that you can't find by a manual inspection since the hose may not be visible from where you are.

http://www.sears.com/shc/s/p_10153_12605_00915200000P?vName=Tools&keyword=air+tank

OK, finally had some time today, and I heard some air leaking. I put a bag over the air intake like it says and it did not hold pressure. It looks like it is under the car, I will take a look some more later, I still have to use the car today.

It might just be a loose clamp. At worst, it's a split pressure hose. These cars are getting old, so it isn't that unusual for a clamp to loosen or a hose to harden and move.