[dudders]

Howdy JM, welcome to the board, sorry to hear of your problem.
Any small amount of oil will cause a considerable amount of smoke and when it is enclosed in your engine bay, it will seem even worse.
The ATF that your mate told you about is an acronym for Automatic Transmission Fluid, it is exactly the same product that is used in many power steering units in motor vehicles.
If the fluid in your power steering is red then it will be ATF - however ATF is known to come in different colours. You can put ATF into your power steering with complete confidence.
As far as which hose is blown, probably fill up your reservoir again, clean all hoses off, and then use your power steering to see where exactly it is coming out.
My 2 cents anyway mate, good luck.