SideWinders

Well i just got my ka in and drove it today, drove fine at first then it just lost power... Put it in first gear and pressed gas pedal to the floor and it luanched extremely slow... Shifted to second gear abd wouldnt get passed 1900rpms... So i keep going like this and my leg start to heat up, then smoke comes out from the engine bay... I pop it open and my headers r glowing extemely bright red... Check oil and radiator fluid... Oil is okay, rad. fluid needed more... So there i go try to go again and once again i step on the gas and it starts off ever so slowly... Second gear stays at 1900rpms and wont go past that... Once again leg heats up and its my headers again... So what could b the problem? Any help would b appreciated...