Red hot exhaust could be from a plugged cat or timing issue. Power loss could also be caused by both. Smoke is normal (just kidding). Smoke could be from bad VSS that was previously unnoticed because it exited the tailpipe. Perhaps if the cat is plugged, now the smoke is exiting at the gasket and is noticable.

Drop the exhaust and see if the power issue is eliminated.

1992 VR4 12.5 @ 110 - SOLD
1993 Stealth RT/TT 11.4 @ 129 - SOLD
1991 VR4 9.2 @ 159 - Old Shop Car
1992 Stealth Twin Turbo ATX - SOLD
1990 Montero LS LWB - RIP
1995 Montero LS - RIP
1998 Montero
1992 Galant VR4 474/1000
2007 Prius