I've definitely heard of doing this. One guy I've hunted with said he used to go toa deer camp every year. The guy who was the cook always smelled like smoke and always seemed to be the first one to get a deer very year. LOL!
Actually someone markets a product that takes advantage of smoke as a cover scent. I've seen it discussed on other forums and the people who have used it swear by it.
http://www.scentsmoker.com