Check my thread "Nicotine and DHT" in the Health and Fitness section. Nicotine and it's metabolite cotinine inhibit the 3-alpha-HSD enzyme which prevents metabolism of DHT into a less potent androgen (3-alpha-androstanediol), however this is a reversible reaction and this enzyme catalyses the reaction of 3-alpha-androstanediol back to DHT as well, so nicotine may not be doing much in terms of overall DHT levels just by inhibiting this enzyme.
As for smoking itself, I used to smoke before the onset of Androgenetic Alopecia (back when I was 15-17) and then quit, I noticed no negative effects on my hair. That being said you should still try to quit as smoking has no benefits to your health.
The vasoconstriction caused by nicotine is also thought to mitigate hair growth but if that really had an effect then vasodilators like glyceryl trinitrate would accelerate hair growth, which they don't. Hope this helps.