The quantum smoothing theory [Tsang, Phys. Rev. Lett. 102, 250403 (2009); Phys. Rev. A, in press (e-print arXiv:0906.4133)] is extended to account for discrete jumps in the classical random process to be estimated, discrete variables in the quantum system, such as spin, angular momentum, and photon number, and Poissonian measurements, such as photon counting. The extended theory is used to model atomic magnetometers and study Hardy's paradox in phase space. In the phasespace picture of Hardy's proposed experiment, the negativity of the predictive Wigner distribution is identified as the culprit of the disagreement between classical reasoning and quantum mechanics.