Maddog,
I started with a Brinkmann water smoker and understood the reasoning behind using water.
However, since I've had my Smokette, I have to say you don't need it. Everything I've done has come out just great. The Smokette's door is pretty tight, and it's well insulated with only the vent to let out the smoke and very little moisture. Much less to clean up too.
Don't really see a reason for using water...but I guess you could experiment.
Just my take on it..