I am not familiar with the Smokette wood box. I know from my 066 and another brand electric that there are holes along the sides and none directly through the bottom. Maybe your woodbox is the exception from those I am familiar with. Having said that, I place my wood in the center of the woodbox so nothing is directly over a section of the carload element. If it catches fire, I don't notice. I am guessing any fire quickly dies out due to lack of air. Nevertheless, you may want to contact CS tech support.
You could make little boats out of heavy foil and place each chunk of wood in its own little boat. Seriously. That is the recommendation on another forum I belong to. It prevents complete combustion. since the sides of the boat partially wraps up the sides of the wood leaving very little exposed. All that is left is charcoal. Also, folks report a milder taste in the finished product.