Smail bogeyed his first hole then things got worse on the difficult par-four 13th, his fourth, when he again found the rough and made a double-bogey six.
Woods, Smail and 1995 champion, Australian Peter O'Malley, teed off to a packed gallery in perfect fine and still weather conditions around 9am today.
The three hit off on the 284m par-four 10th hole with crowds as many as 10-deep lining the fairways.
But the action came from O'Malley rather than the tournament's biggest drawcard as he birdied the 10th with a curling 4m putt, while Woods made par and Smail a bogey five.
Woods sent his five-iron tee shot down the middle and fired a wedge within 2m of the pin to huge applause but failed to deliver the expected birdie when he curved the putt to the right of the hole.
It set the tone for the first nine, with Woods getting into birdie position but coming undone by the greens dampened by heavy recent rain.
His first five holes ended in tap-ins after just missing putts. He had a royal chance to go two-under on the third hole he played, the par-five 500m 12th, after firing his second shot pin-high.
But he missed the 4m putt before tapping in to go to one-under.
Then after his blemish on 17 he almost made amends but his long eagle attempt on 18 fell just short.
O'Malley ended a tidy first nine on two-under.
Half the field were yet to start their rounds, including 2000 champion and world No 29 Michael Campbell, who tees off with 2000 runnerup Craig Perks and Australian Craig Parry in the afternoon's feature group at 1.15pm.
- NZPA
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