>>>So when the temp gets low, instead of adding wood, just add more charcoal and perhaps a hint of wood?<<<
that sounds about right, and by "just a hint" that means just one modestly-sized chunk or if you have chips, use a handful or two rolled in a foil log with a cuople of pin pricks. the smoke FLAVOR is what you want, not the smoke itself, per say.
lump charcoal makes a big difference vs. regular briquettes because it does have a faint, subtle sweet smoke scent. this will help, but i think if you add one chunk of wood (or a foil log) once an hour for three hours or so, it should be fine. the thin blue smoke (TBS) is what you want, and when you get it, you will see why!
>>>Do you soak the wood or leave it dry?<<<
this will prbably be debated forever. lately, i have been doing a bit of both - soaking when i want a slower smoker and then using them dry if i want a quick burst or a few quick puffs of smoke. i honestly think that in the end, it probably doesn't matter with chunks - when it comes to chips and dust, you might see a slower smoke in a foil log if you soak them. it does add a bit of moisutre to the whole thing, and that can't hurt.
good luck and let us know how it goes! my wife also is not a big fan of smokey foods, but once i learned to seek the TBS, she became much more tolerant of it and actually enjoyed it a couple of times!
p.s. - i still consider myself a bit of a noob at this, so anyone can feel free to correct me - these are simply my observations.