If you can put your foot to the floor it means there is no pressure in the breaking system, if there are no leaks then check that there is fluid in the pot, if so then take it to a garage and get it checked out.
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Re: Peugeot 205 brakes not working
Hi you got a brake fliud leak do a visual check around all your wheels at the back of them look for signs of leaks ifyou cannot see any have a look at your master cylinder for leaks if you can,t see any take the wheels off and have a proper look yates210456
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Your igniton internal parts is wearing, worn out. Try jiggling the key as you turn it. Also try putting your foot on the brake, put the car in neutral, and then try to turn the key. If not your going to need a new key lock/ignition.
Definitely sounds like you have a brake fluid leak. It shouldn't be driven anymore until the problem is repaired. The red brake light comes on when the fluid is low. If your in a rusty climate one of the brake lines has probably rusted out. When it dries up try following the lines from the master to each wheel. However since you said you saw smoke when braking i'd bet the leak is near a wheel and fluid hit the rotor or caliper which caused the smoke. In either case, sounds like something has to be replaced / repaired. Good luck.
My 03 trailblazer does the same thing and the service dept. told me that it was normal for this model to do that, it has never failed to stop but if your sitting at a red light you can feel the peddle go down to almost the floor but it stops fine and it has done this since day 1 and they say thats normal on the trailblazer.