Ok there are 2 smooths....one is setup by default. I dont think 8.5 has a smooth preview (I cant remember my last version dammit!!) Ok I had ver 8.0 and there wasnt a smooth preview...8.5 I cant remember.

If you use 'Mesh-Smooth' dont forget to CTRL Z otherwise it will bake with the smooth on...and you cant get it back. Trust me Ive done it...

DID you setup the 3 key yourself to smooth???

On the 'NUM' pad press 1 then 2 then 3 and see what happens??