First, there is no need to soak your wood. You might be seeing water vapor being vented as the wood heats up. Second, the smoker will heat at max until set temp is reached. Usually this takes less than 30 minutes, and shouldn't cause too much smoke flavor, except for when you want lower temps and less smoke, like for fish. That process might take longer, and use more heat, if your smoker has to boil off the water in your wood before it can come to temp. Keep the wood amount low. Once your smoker is seasoned, you shouldn't need more than about 2 ounces of wood, max, for any smoke, maybe except a 12 - 16 hour brisket.
Based on previous posts, you might want to check if there is clearance between your heating element under your wood box, and the box bottom. A little clearance is good to avoid igniting your wood (a bad thing). Making a slight manual adjustment to the heater level is easy. Call CS if these tips don't work. Hope this helps. Good luck.