smoke grenades don't work on AI normally unless you have one of the few mods out there that makes em functional against AI
also about setviewdistance.... this command does have a dramatic effect on everyone on the map AI or not ...
I remember reading about it on the official forums like a really long time ago.. but one of the BIS guys like Suma or Maruk posted that Setviewdistance does work on all units
so if you're putting setviewdistance 5000 in a trigger that means that everyone on the map can see that far away
as for the fact of AI shooting through fog and such and bushes.. if you've ever played SP missions where you aren't in command and in cadet mode you'll notice that when you're told to target something by your CO then the little square deal comes up where the guy was when he got called out to you .. the box may move.. stay still ect... this has nothing to do with the guys real position just his anticipated path based on when he was spotted..
well the AI works in the same way they get one of those little squares around you and they're gonna let some rounds loose in that direction whether or not they have a visual on you or not..... hiding for a few seconds usually can get the target box off of you and you can gain an advantage from the fog/bush you're in once again ..
also a better way to reduce lag/make missions run smoother besides using setviewdistance is by using the benchmark command on objects/units ect... so if your PC isn't so great.. you can still play the mission but with slightly less objects/units etc..
:toocool:
Edit: I just read also that you can use:
setviewdistance benchmark to automatically set the viewdistance to the recommended distance for the players computer