Is the projective closure of a smooth variety still smooth?
Solution 1:
No, smoothness of $X$ is not inherited by $\bar X$.
Take two parallel lines in $\mathbb A^2_k$. Their union $X\subset \mathbb A^2_k$ is a smooth scheme but the lines meet at a singular point of $\bar X $ at infinity, so that $\bar X \subset \mathbb P^2_k$ is no longer smooth.
Renaissance artists, who invented perspective, have given us beautiful paintings of these schemes.
Solution 2:
No. There is no reason for the curve to be smooth at the points at infinity. For simplicity I will give a counterexample for algebraically closed fields of characteristic not $2$ or $3$. Consider the curve $X$ in $\mathbb{A}^2$ defined by the equation $$x y^2 - 1 = 0$$ It is straightforward to verify that $$y^2 \, \mathrm{d}x + 2 x y \, \mathrm{d} y$$ is nowhere vanishing on $X$, so $X$ is non-singular.
The projective closure $\overline{X}$ in $\mathbb{P}^2$ is defined by the equation $$x y^2 - z^3 = 0$$ Now, let us consider the affine piece $\overline{X} \cap \{ x \ne 0 \}$. This is the affine curve defined by the equation $$y^2 - z^3 = 0$$ and it is readily checked that this curve has a cusp at $(0, 0)$. Thus the curve $\overline{X}$ is singular at the point $(1 : 0 : 0)$ (and, in fact, only there).
That said, at least for non-singular curves $X$, there is always a non-singular projective curve containing $X$ as a dense open subvariety. This is done in e.g. Hartshorne [Ch. I, §6]. The only thing is that this projective curve may live in a projective space of higher dimension than the affine space you started with!
Solution 3:
In some sense the opposite is true. Namely, let $X \subset \mathbb{P}^n$ be an irreducible quasi-projective variety (over an algebraically closed field, let us say). Then there is a proper closed subvariety $S \subset X$ consisting of the singular points, so $Y = X \setminus S$ is a smooth quasi-projective variety.
In other words, if the answer to your question were "yes" then all varieties would be smooth!
Solution 4:
Lots of good answers here already, but here's another reason why your statement is false. Consider a singular projective variety $X \subseteq \mathbb{P}^n$ and suppose that the singular locus is contained in a hyperplane $H \subseteq \mathbb{P}^n$. (For example, any plane curve with a unique singular point fits this description.) Then $X' = X \setminus X \cap H$ is a smooth affine variety (sitting in $\mathbb{A}^n \cong \mathbb{P}^n \setminus H$) whose projective closure is the singular variety $X$.