Ok so i live in michigan, and its really cold here right now. When my car gets to normal operating temp, i turn on the heat almost all the way. After having the heat on for about 2 to 3 minutes the temp drops almost back to 160 and i don't really feel like the heat is working all to well anymore so i shut it off and let the car get back to temp again to turn it back on. Also the car starts to smell like coolant after a while and when i open the hood to see there is smoke coming from around the fan area. If it wasn't so cold outside i would probably look for a little longer to see whats goin on but i can't take it for very long. If anyone knows where the best place to start the help would be very appriciated. Thanks

This sounds like a leaking heater core. You will probably need to change it. I would first check the hoses to make sure they are not leaking but based on your description it sounds like that is where the leak comes from.

Under the hood on the firewall, look for two 1" to 1-1/2" diameter black hoses that go from the belt tensioner housing to the firewall - they are the heater hoses. On the other side of the firewall is where the heater core is. I haven't done one on a GP, but I understand it's tucked up in there under the dash pretty good.