RPM,
I use the wood sawdust compressed pellets and have had great success with them, even at low temps making jerky.
I put about 1/3 cup of pellets in a tuna can, cover it with aluminum foil, and with a toothpick, prick one hole in the foil. I then set the tuna can in the Smokette wood box toward the front. I have not used plain sawdust, but I have used cherry shavings. I would imagine the plain sawdust would give similar results.
The 1/3 cup is a starting point. I only use 1/4 cup when making jerky or dead chicken parts, but I have never used more than 1/3 cup even when cooking butts. You could make up a foil pouch, but the tuna can is so handy when it comes to clean-up, and it is reuseable.
It is important to just make one small hole in the foil, since you want the wood to smoke, and not burn. The one little hole starves it of oxygen, and it smokes like a champ. Oh yea, do not soak the chips or sawdust.
A blend of 2 parts Oak to 1 part Cherry makes a delightful smoke, by the way, and it sounds like you'll have plenty of both! Good luck, and let us know how you like it.