First, with a Guru they say in the manual, no water. Second chips produce lots of smoke really fast....half a bag is a lot of smoke. A little goes a long way in the WSM. I use my guru dry with the top vent closed 50% per the instructions. Other than the chips and the waterpan I think you did everything right. When I get ready to smoke I assemble the entire center section with meat, probes, and lid. Once I dump the 15 or so lit coals on my unlit fuel I almost immediately add the center section assembly. Last plug in the probes and set the guru temp and walk away. Just to add, for ribs I will use 2 fist sized chunks of pecan wood. Welcome to the addiction.