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After a game I played tonight, I spectated a game. One of the players of that game was using a FW Spartan Land Raider. On his first turn, he moved flat out and then used Power of the Machine Spirit to shoot off one of his weapons. I called him out on that, but he maintained that Power of the Machine Spirit let you fire a weapon regardless. It ended up not mattering since his target made his saves so I let it go, but I'm still unconvinced. Does Power of the Machine Spirit let you shoot a weapon even if you moved Flat Out. I'm pretty sure it doesn't.

You are correct.

Power of the machine spirit is a special rule, and while those do trump basic rules they may contain limitations within the ruling. On page 40, basic rule book, you will find the entry for Power of the Machine Spirit and can verify what these limitations are yourself. I do not post anything from the codex's or rule books directly as that can be seem as breaching terms and services of most forums. However, I can verify that you are correct that they can not fire after moving flat out or popping smoke.

No, it quite clearly states that it does not. Tell him to read his FAQ, where it tells him that the PotMS rules have been replaced and to see the rulebook, and tell him to read page 40 of the rulebook, where it gives the updated rules for PotMS.

http://www.games-workshop.com/MEDIA_CustomProductCatalog/m3180059a_Space_Marines_v1.3_APRIL13.pdf