Gettin' Basted - Don't give up on that smoker! I've smoked on gas, electric, an old home made stick/charcoal burner, but I've never smoked on a better rig than my Visions Kamado! It holds the temp all night (19 hr brisket with 1 reload), (dueling Butts for 12 hrs, no reload).
I think the secret is between 1/2 - 1 open hole on top, and then I control my heat through the bottom vent (usually 1&1/2 - 2 lines of the bottom holes. It's a little hard to maintain at 225, but around 230-260, I can run that baby all night with thin blue smoke.
I think the reason your seeing no white smoke when you open up too far is all the O2 boosting up the fire consuming it. I use oak lump charcoal, a chimney to start it with and what I think is enough extra to get through the cook in the smoker (takes a half hr or so to even out when you dump the chimney on), and big hunks of cherry logs (typically) for the smoke.
I mess with the vents for that half hr about every 5-10 minutes or so while i'm getting the meat ready, water pant, what ever. After that most of the heavy smoke is gone, and on the meat goes...
Feel free to reach out to me directly or in this post if you want to discuss more or see pics of my Visions if needed.
Good luck!
Jason