Applewood Chunks - Wet or dry

Dry - wet wood has to dry out first before it can start to char and smoke.

It's like having a discussion of which is better, Ford or Chevy. Some will tell why you should or shouldn't but really just boils down to your own personal preference.  Some swear by it and others say no way.  

@FiremanMikeD  ... sounds like a winner to me.

If I'm doing a low and slow I mix the wood chunks throughout the charcoal as I'm filling the egg. If I'm just adding a chunk or two (or a handful of chips) to cook a steak I'll just toss them on top. 

Also, for what it's worth I tend to soak wood chips but leave wood chunks dry. I find the soak with the chips helps to prevent them all from burning up as soon as they hit the fire. No need with the chunks because they last much longer. 

What @ChillyWillis said. Dry chips will burn up before you get the food on the egg and chunks will smolder for a long time dry. You can also make a little foil pack for chips to prolong smoking. Or you can keep both chips and chunks on hand for different cooks. 

I only use wood chunks and I always cook with them dry now.  When I first started doing BBQ I would soak the chunks because everything I read at the time said to do it that way but I was never really happy with the product.  I never really liked the flavor profile of the smoke on the meat so I started out changing the wood I was using thinking maybe I didn't care for Hickory as much but I kept getting the same bad flavor from the smoke.  So I started to experiment with not soaking and I felt the product turned out better.  My thought on why is that when wood is wet and burned the smell is a little different and off compared to dry wood because your fire has to dry the wood back out before it catches so it smolders the chunks until it's dry enough to ignite.  Your meat takes the most smoke early in the cook so when you're using wet wood you're getting those flavors from the wet smoldering wood on your meat.  That's my theory and thought on it.  Some swear that it's better to soak the wood others like myself think dry for similar reasons as I stated here.  As long as you and your guests are happy with the outcome you're not going wrong either way.  I think the best way for you to make your decision is to cook it with wet wood one time and then with dry the next and that being the only difference you make.  Then you'll know which one you and the family or guests prefer.