Here are a few handy little tips for people who don't know how to use a router. Which appears to be just about everyone in this thread

1) While you may get some burning during a cut, you shouldn't be getting much. If you can see smoke
you're doing something very wrong! When running a bit at very high speed, it is important to keep the cutter moving through the workpiece. If you stay in one spot too long, you'll generate a lot of friction, a lot of heat, and eventually end up burning the wood or the bit.
If you're getting burning you need to either move the router along the wood faster
or reduce the speed at which the router turns the bit! I've noticed that newbies tend to be a bit hesitant with the router. I guess they're afraid of it getting out of control or something, so they lock it in a death grip and move it along the wood at a snail's pace. If you have this tendency,
dial back the RPMs! Of course, this assumes that you've installed the slot cutter so that it's spinning in the right direction

2) Don't buy cheap carbide bits. Especially don't buy cheap carbide bits if you're the type that has a problem with burning wood, bits, etc. while using your router. There are two problems with cheap carbide bits: A) the cutters tend not to be as sharp as on more expensive bits so they generate more heat, and B) the way the carbide cutter is bonded to the bit isn't as strong. As aszurom found out, when you overheat a cheap carbide bit, the bonds holding the carbide to the bit tend to fail. I can't imagine it's fun to get hit by a sharp piece of carbide... especially in the face!