I've put the cd promo of "The More You Ignore Me, The Closer I Get" on ebay, along with the Uk seven inch singles for Alma Matters, Roys Keen and Satan Rejected My Soul.
You are correct this was in Smiths Indeed, and the incident took place on the American/Canadian leg on the Queen is Dead tour.
Incidentally, the article was written by Julia Riley under her maiden name
I've just put one of these on ebay. This is the yellow condom as sold on the UK tour, and has "Let the right one slip in" on the pack.