Google the BBQ FAQ and you'll find some mods to the smoker that make it usable, including lowering the smoke stack to grade level, adding a tuning plate, etc.
Also, don't trust the temp gauge on the thing--measure the temp at grate level next to the food with a probe stuck thru a potato.
Keep the damper wide open and vary your fire size to moderate the temp swings. This will reduce creosote build-up on your food.
You mentioned smoking with all wood. Unless you preburn and shovel the coal in the firebox, you'll wind up oversmoking the meat and it will be bitter. Plus, if you use a charcoal basket you'll be able to extend your cook times and maintain steady heat. You'll want to use more wood than in your CS, but how much depends on you.
Lump vs. Kingsford, your choice. A lot of people use the latter and have fine results.