In my experience, it does. You could say that they're all coincidences, but it's enough for me to quit smoking!
I was never a "heavy" smoker, but back in uni I used to smoke 4 cigarettes a day for about 3 years, and those 3 years my acne was just getting worse and worse. I was also doing nothing to help my acne, wasn't using any special topicals or taking anything. I quit in my 4th year and my acne was getting better. Still pretty bad, but there was definite improvement. I've quit for about 2 years now, but once in a while I pick up smoking for a week or so after going out to a bar or something because it's hard to break out of being a "social smoker" and i always notice that I get a few spots on my upper cheeks, which may be linked to your lungs. I dunno how much proof is behind that but it seemed to make sense for me and my body at least.
I have read that smoking can be bad for your skin because the smoke blows onto your face sometimes and around your mouth area. It might not cause acne specifically but it can age your skin and do other bad things, and that I can totally believe. Sometimes when it comes to the bad effects of smoking, I'd like to believe all of them whether or not they've been scientifically proven, just because it helps me stay away.
From what I understand, there is a correlation between smoking and acne. However, there is no proof that smoking CAUSES acne, only that people who smoke also tend to have more breakouts than people who don't. This could be for many reasons, however - smoking DOES lead to inflammation within the body (including the skin). Inflammation is one of the 4 main causes of acne (the others being increased sebum production, inefficient skin-cell turnover, and bacteria proliferation). As such, quitting smoking probably wont cure your acne, but it may help.
Epidemiology of acne in the general population: the risk of smoking.
Acne is a common skin disorder, but epidemiological data from the general population obtained by examination are scarce. Clinical experience suggests an association between smoking and acne, although confirmatory evidence from appropriate studies is lacking.
OBJECTIVES:
To determine the prevalence and demographic factors of acne in a general population sample and to investigate the association ofsmoking and acne on a qualitative and quantitative level.
METHODS:
In a cross-sectional study, 896 citizens (aged 1--87 years, median 42) of the City of Hamburg were dermatologically examined. The prevalence and severity of acne were recorded and further information on demographic variables, medical history, and alcohol and cigarette consumption were obtained by a standardized interview.
RESULTS:
According to the clinical examination, acne was present in 26.8% overall, and was more prevalent in men (29.9%) than women (23.7%) (odds ratio, OR 1.37, 95% confidence interval, CI 1.01--1.87). Prevalence followed a significant linear trend over age with peak prevalence between 14 and 29 years (P < 0.001). The reported age at onset was significantly lower in women than men (P = 0.015). According to multiple logistic regression analyses acne prevalence was significantly higher in active smokers (40.8%, OR 2.04, 95% CI 1.40--2.99) as compared with non-smokers (25.2%). A significant linear relationship between acne prevalence and number of cigarettes smoked daily was obtained (trend test: P < 0.0001). In addition, a significant dose-dependent relationship between acne severity and daily cigarette consumption was shown by linear regression analysis (P = 0.001).
CONCLUSIONS:
Smoking is a clinically important contributory factor to acne prevalence and severity.
I also read a few other studies that only showed board line statistical significance or little to no correlation at all. The studies are mixed because there are so many other factors which makes it hard to isolate just one factor (smoking).
It might not be a bad idea to quit though and see for yourself 
some are saying there is connection and others are saying there is no connection...what is this confusion?
There are always studies done to prove that there either is or isn't a correlation between the two...there are many things in the medical field that are not absolute, which is why you should read everything with a grain of salt, and then using the information you've gathered, form your own opinion.
some are saying there is connection and others are saying there is no connection...what is this confusion?
LeadingForce has a point. As I said before, some things can cause acne in one person but not in another. Studies are great, but in the end it all comes down to how YOUR body reacts to things.