The whine you hear in the rear end is probably the normal whine- My 806 has a fairly loud rear end, a friend's 1206 is fairly loud, too. The transmissions are all straight cut gears- loud but sturdy.
The black smoke when accelerating in high gear and startup is a good thing- I'd be more concerned if it didn't throw up a little black smoke.
Sounds like you have found a fairly good tractor. The $6900 price tag sounds as if the owner is pretty proud of his tractor. For that price, It had better have excellent tires and a pretty nice looking paint job, in my opinion.
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