For those who don't know, pictured above is an offset smoker. I have one that I bought a long time ago that I now use primarily for charcoal grilling. The larger chamber is called the smoke box and the smaller chamber is called the fire box. Normally, you would have the wood in the fire box and the food in the smoke box, but you can also grill in the smokebox if desired.
If you plan on grilling in an offset/horizontal smoker, here is something I do all the time.
When you light the charcoal, use a little bit more than you would normally use for grilling. When your charcoal is ready, dump it in the smoke box and spread them out as usual. With some long tongs, move 10-15 of the briquettes into the fire box and form a little pile. Place a log of wood or a few wood blocks directly on top of the miniature charcoal pile. Give it about 10 minutes to get going.
Beats the hell out of using chips right on the cooking coals. It makes more smoke, it's a very consistant and steady amount of smoke, and you don't have to worry about flareups or adding more chips. This works great for anything you would want to grill.. steaks, kabobs, chicken breasts, whatever.