I am new to longtails... and I bought a used one here recently... now it is smoking from around the top Where the shaft comes out of the housing..any advice on what it could be??

check your grease level. it sounds like the upper bearing isnt getting lubed enough.

I greased it to make sure now some grease ran out by the shaft so I'm taking it I need to replace the seal and bearing?

Not necessarily, it may have just oozed past the seal with out blowing it. Do you have the pressure lubricator on yours ?