It sounds like a "bullet" type smoker. A base that has a charcoal pan, then the middle section that will hold your water pan and racks, then the cover that will have the gauge. there should be a door also on the middle section, this will help control your airflow. I stop adding wood after three hours, the meat will not absorb any more flavor after that, so why waste the wood. For a 10-12 pound bird, you will smoking it around 2-3 hours. It is hard to say how often to stoke the fire, every smoker is different, that's why installing the thermometer is a great idea. You want your temp to be 275, but you will always have some fluctuation, especially on damp, rainy, cold, or windy days.
Wrap the water pan in 2 layers of heavy duty foil, all the way around the entire pan, inside and out. This will help with the clean up. Fill you charcoal pan with unlit coals and throw some wood chunks on top. Light your chimney starter and make sure all of the coals in the chimney starter are glowing. Place the water pan into the middle section, along with the rack. Dump the coals from the chimney starter ontop of the coals in the charocal pan. Set the middle section on top of the base/charcoal pan, and cover. When the temp hits 275, place the bird on the rack and cover again. Now, lift off the middle section and add some more wood chunks and quickly replace the middle section. Monitor the bird, and turn halfway through the smoke. If you need to add coals, you can do so through the door. If you have a probe type thermometer you can insert it into the leg/thigh area prior to adding the bird, then run the cord under the cover and plug it into the unit. You can monitor the bird's temp this way, and it is way easier than opening the smoker. Each time you lift the cover, you lose valuable heat and add to the cook time.
Make sure the smoker is set upon a flat/level surface that is fire retardant, such as a concrete patio. Never on grass or wood. The same goes for the chimeny starter. Keep a fire extingusher nearby and/or a hose just in case.
Never use lighter fluid or quick-lite, match-lite charcoal, as these contain an accelerant and you WILL taste it on your food. This may be why your buddy always had problems with the taste. Use only pure charcoal in your chimney, lump charcoal in the smoker, and wood chunks for the smoke flavor. I use hickory, oak, peach, apple, and pecan. Mesquite to me imparts an overpowering flavor. Good luck, and shoot if you have any more questions.