Hi Daniel,
Is the gun a flintlock or a caplock? If it's a caplock, there's more trouble than just an ill fitted lock. I suspect it's a flint and the smoking is burning priming powder that made it's way into the gap.
The bolster and barrel faces should be tight at the same time the inside of the lockplate meets the wood of the lock mortise. With the shim in place is the lock plate supported? As you file the bolster, you could run into other issues. If a caplock, will the hammer still line up with the nipple? If a flint, you will likely need to file the inside edge of the frizzen the same amount or a little more than the bolster, so it doesn't bind on the barrel.
If it was mine, I'd soot the inside of the lock so I could see exactly where wood is contacting the inside of the lock. Whether to stick with the shim is a judgement call, depending on how much wood would have to be removed. it ain't the best, but with the shim in place, if the lock plate is solid in the mortise, you should be ok.
-Ron