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chunks in foil works best I hear with gas grills. just soak the chunks in water for 30 min before adding them to the coals. As a side note, those little grill smoke boxes arent worth the money IMHO, you get the same effect from soaking the wood and putting it on the coals. make sure to drain them well.
theres 2 sides to soaking wood. my side (& lots of others is) wet wood takes longer to smoke- bottom line. if ya add wood to heat - ya have smoke. but i'm a wood /coal burnoer.