Pros: Everything there to modify, rack space
Cons: Bad engineering
This smoker really does suck... that having been said, the basics are all there for you to make it useful. As you will find out, if you use it in it's recommended configuration, you will find it very difficult to get this baby up to 200 degrees F. The good thing is that you can pick them up used on craigslist for a steal!
SO, you must rearrange it a bit to make it useable. Step 1) leave the charcoal tray where it is... on the bottom. It will now become your ash collection tray. Step 2) go out and buy one of those inverse pyramid looking vegetable cooking baskets for the grill - the one with all of the holes in it, and handles on either side (for example: Weber Style 6434 Professional-Grade Vegetable Basket) this vegetable basket will become your new charcoal holder. The handles will allow you to slide it where the wood-chip holder previously was. This is good, because now it is elevated - allowing air to circulate all around. Step 3) position your wood-chip holder above the new charcoal basket. Step 4) position the water pan above the wood-chip holder. Now you are almost ready for makin bacon... Step 5) fill the wood chip holder with soaked wood chips. Step 6) fill the new charcoal basket with hot coals. Step 7) fill the water pan with BOILING HOT WATER!!! The water acts to keep the heat stable (as a heat sink) and keeps your food moist. It is critical that the water be pre-boiled otherwise all of the heat will go into heating the water, rather than cooking your food. Note: you do not need to use water if you intend on making jerky or salmon or some other dried form of smoked food. But the moisture will help in getting the smoke to bind to and penetrate your food item, such as a roast, shoulder, etc...
Now you have a useable smoker that will easily achieve 250 degrees F in 10 minutes with vents only half open. I have found that the charcoal needs to be replenished about every 2 hours. Don't worry about all of the smoke coming out the door seam, you do need some air flow to prevent creosote buildup on your food... and to make the neighbors jealous.