Passengers onboard the Ocean Cruises vessel, Ocean Village, awoke gasping for clean air in a smoke filled cruise ship with the smell of something burning.

The cruise ship was "swathed in a cloud of rancid smoke", according to one passenger, who awoke thinking the ship was ablaze.
Cruise Ship Passengers
Swathed In Clouds Of Rancid Smoke From Fire
Ocean Village Cruises  - August 28, 2007
They soon learned that the smoke was from the raging fires in Greece labeled as arson, and possibly a terrorist act, 9 miles away near Olympia, Greece.

Fueled by strong winds and drought stricken terrain, the fires have engulfed villages, forests and farmland and scorched woodland around Ancient Olympia. Residents say the air is raining ashes.

The captain,  Jon Hobb announced that it had looked like sea fog surrounding the ship. He apparently had been unaware of the fires that have been making worldwide headlines, and the hazard they presented to vessels in the area.
Ocean Village Cruises offers 7 to 14 day cruises in the Mediterranean as well as transatlantic voyages and caribbean cruises.

The ship had been due to stop off at Katakolon on the coast to visit Olympia. But the fires are so severe that the ship has been diverted to the island of Zakynthos.
Ocean Village is currently off the coast of the Peloponnese, on a Mediterranean cruise.

It is unclear why the ship would deliberately plow into the area of poor air quality, instead of avoiding the area under a state of emergency.

Over 60 people have died in the current fires to date, hundreds have lost their homes, and the country side is littered with the carcasses of animals that became victims of heartless individuals. Seven people have been arrested and charged for setting the fires.

The latest news on the fire says the area was struck by an earthquake registering 5.0 on the richter scale.

Greece has a history of developers deliberately setting fires in forest areas, because of the ban on developement in forested areas. Once the fire has done the damage and the forest is gone, it is open for developement instead of reforested.
Smoke satellite view