Haha yeah. No, the point is that in first place you shouldn't be able to see inside the character.

No, haven't got any modified skins or mods.

http://www.youtube.com/watch?v=LJVQNFAD_X8
There you can see a real smoke grenade if you start at 2:10
You are very wrong if you think that it's mainly used for marking.

Allright, all needed information should now be added.

Running with i5 2500k @ 4.2GHz, 2x 6970's in crossfire and 16Gb ram.

It shouldn't be continuous loop like it is and it also sounds like a voice of a teen, not like adult man.

Well it's impossible to identify enemy from long range cause camos are almost the same.

Agreed, it doesn't look good or realistic when ppl seem to be lying on bare ground.

I've done report for the same issue.