I do have the KK and am a pretty big fan of it. Agreed it's not super wide, but if you consider the diagonal length, it's not too shabby. And, for me, the amount vertical space, the versatility of the numerous shelves more than makes up for it being a few inches too narrow. Plus it's got the side door access for wood and water and it's an overall slightly heavier duty design compared to some of the others out there.
Like all cookers the exact settings will be specific to your setup (exposure, wind, ambient temp, etc) but I have found it to be pretty easy to use--from low temps to high temps, short smokes to long ones.
Try a search of my posts and pics and review of the KK if you want more details. I have to go right now and don't have time to search and re-post. But as far as your immediate question:
I prefer chips but will sometimes throw a chunk or two in if I feel it necessary. If I do that, maybe 80:20 chips to chunks ratio.
Keep the lid on the wood box to keep contents from catching fire. I can usually get a good couple hours of nice smoke. Smoke and water usually last a few hours depending on heat level.
I have found that I usually have the vents pretty wide open to half closed but will use them to trim the temp. If totally closed it doesn't get enough O2.
Usually, once I find the sweet spot on the temp given the day's conditions, it's really fire and forget.
I usually do run a remote digital probe for the smoker but the door thermometer is relatively accurate (but they had to send me a new one). The prob is that the heat travels up the sides so the door reads a bit hotter than the shelves.
Is the one you have used? if not, have you seasoned and burned off the manufacturing nasties? THAT IS A MUST with any smoker, I'd say.
In the end I really like it and think you should consider yourself lucky to have received this as a gift! We're having a snow day so I'm doing cheese in mine for the first time. I've done fish, the best brisket I've ever made (and I'm from south Texas), NC style BBQ chicken that nearly made my neighbors cry, etc, etc.
Enjoy and post up or PM if you have more q's. (and search for my pics and posts.)