Let me ask our young Scandinavian friend a couple more questions...how long is your smoke generator running? Are you re-fueling it, if so how often? One theory is that you might be burning, not smoking, your fuel and that's giving the off-flavor. I also assume yours is a venturi-based generator so the smaller pipe on your blue generator is attached to an air pump of some sort? (A larger output pipe will probably draw better then too.)
The other question is what is that pretty blue crucible you're using? It looks like annodized aluminum. Is there coating on the inside for use as a water bottle? That could be your entire problem. You really want your "firebox" to be non-reactive at the temps it will see. It needs to have a melting point higher than typical orange flame temperatures which is about 1200C (or ~2200F for us 'Mericans) so aluminum isn't a great choice even with no coatings on it. You may want to look inside and see if you don't have aluminum oxide powder forming in there.