Aaron,
I ran the pinch valve system for years on the Big Hots and made great smoke with it. You said you got smoke when you squeezed the tank? That leads me to think that you don't have enough tank pressure. Do you have a check valve between your crankcase line and your tank? I know it sounds like a dumb question but we have to cover the basics,right? This system will make a lot of pressure so make sure your hoses are properly secured so you don't end up with a plane full of smoke fluid. You may also find it helpful to install a needle valve on the pressure line to the muffler to make sure you don't "flood" the muffler and cool it too much. I would be glad to help you sort this out if you need me to.
Rusty