My car's engine is knocking and starting to smoke. It's also burning oil.
Experiencing an engine knock is not a problem to be taken lightly. Typically when an engine begins to produce a knocking sound, it is a good indication that there is some sort of internal engine damage already going on. This, added with the fact that the Lancer is also burning oil leading to the smoke you are seeing, makes me to believe that this might be a worse case scenario with your Mitsubishi. However, with the limited information provided it is difficult to condemn the engine to being rebuilt or replaced just yet. With engine concerns, I always find it best to enlist the assistance of a certified mechanic for proper diagnosis. They will be able to determine what is causing the smoke and burning oil.