well, if you fill your oil up to the top of the level mark with the dip resting on the thread, it should be fine, i've never had a problem doing it like this.....bit do dip it after a good run, and let the bike stand for 10 minutes first, you get a fairly accurate reading then.
Check both your breathers are clear and the pipes arn't cracked or split etc, both pipes leave the engine adjacent to the cluctch actuating arm...a small one goes to the top of the oil tank (i've had this come off in the past) and a larger one goes to the airbox. (if there is excessive amounts of oil getting into the airbox, then possibly it is leaking down onto the exhaust), but in any event it is oil leaking from somewhere and landing on a hot downpipe or silencer bow which is causing the smoke.
You'll need to clean the engine thoroughly, then go for a run, leave the engine running and look to see where it is coming from......the pipes to and from the oil tank are worth an extra careful inspection.....in my experience srx engines are pretty oil tight and any oil leaks tend to be from external connections....the oil tank is a 2 piece item...it is feasable that the joint is leaking....i've not heard of anyone having a proble with that...but you never know
good luck