1) What temp shoud the meat be at when put on the smoker.
I usually go just about right from the fridge to the smoker.
2) Any pre rub like oil etc?
Slather up with some mustard or I have used extra virgin vinegar oil.
3) How much rub should be used, I used rub from a great Texas pit so that should not be my problem.
Rub to your liken. I like to dust enough rub to cover, then wrap in plastic wrap an into the fridge overnight.
4) Meat up / down or both ?
5) Basting or rub and leave alone ?
Some like to use a spray bottle with apple juice which you can add whatever you like. CPT Morgan spiced rum is used a lot with apple juice. I usually do spares 3-2-1 and don't even bother to spritz anymore.
6) Grill after somking to finish ?
Using the 3-2-1 (for spare ribs) or 2-2-1 (for baby backs) I haven't found a need to grill to finish. The 3-2-1 or 2-2-1 is on the smoker for the first 3 hours, then wrap in foil with some additional apple juice for up to 2 hours back in the smoker and then unfoil and put back in the smoker for the last hour to firm back up.
Some folks don't foil at all and I've seen where some use the method you mentioned. It's really just a matter of finding what works best for you. I've been experimenting trying to find what I like for several months now and I'm still tweaking things. lol Just keep track of what you do with each smoke and make adjustments to fine tune it to your liking. I'd probably start off with the 3-2-1 method I mentioned for a good starting point. Search 3-2-1 and you'll find a lot of information on this method.
Like Bluechip said, you may have had to much smoke? Billowing white smoke isn't good, Thin Blue Smoke (TBS) is what you want.
You may want to bump your chamber temp to 225*.