Are you sure you have the correctly rated resistor and ballast setup? We have more information in the Technical Manual.
Another reason might be an imminently-failing interference suppressor condenser. Do you have an interference suppression condenser by the coil? It looks a bit bigger that the distributor condenser, and is mounted to one of the coil mount bolts. I believe only cars with radios installed from the factory had it.
If you have one, then make sure the resistance across it is zero (appears disconnected to an ohm-meter, or multimeter). This condenser is connected to the coil side of the ballast resistor. In the extreme case (see below), a short to ground on this side of the resistor will drop all 12 volts across the resistor, causing it to get very hot indeed, and in fact smoking! (again, see below). In this case, the car will not start, as the input end of the coil would be shorted.
In the more likely case of only a slight breakdown in the condenser (instead of a direct short), the condenser will look more like a resistor, causing a higher voltage drop at this point, and excess current flow though the resistor-- again making it warm or hot (but not necessarily smoke).
In my case, on the morning I was to drive to Blacklick for PUB'09, my interference suppressor completely shorted, and caused my ballast resistor to start smoking when I tried to start the car! (all 12 volts were being dropped over the resistor). I was too impatient to try and debug the problem, so I left the car behind. On my return from Ohio, I tracked the problem down to the shorted condenser. I just removed the condenser, and voila! Problem solved. Even the previously smoking resistor began to work normally. I replaced it anyway due to reliability concerns, for an overheated resistor may no longer have the same resistance or heat-range behaviour.
Hope this helps