Pete, if I use pellets I stand the tube up vertically, light it with a torch on three sides and leave it standing lit for a few minutes. I think I read five minutes yet I don't really time it.
With gloves ( the tube is now HOT ) I hold the tube, blow out the flame and then gently set it on its side. My smoke tube has one side with no holes, and I have this side down.
When I use it on my BGE or my WSK I put the smoke tube below the food grate. Often I'll cold smoke a tri tip for an hour with just the smoke tube, and then light coal later keeping the smoke tube going in addition to coal. I put the coal in char baskets toward the back with the smoke tube leaning on the CBs with the un-lit end towards the front and then cook indirect with the meat towards the front.
Hope this helps. The key is letting the burn get started with the tube vertical.
Please post an update if this works or if you still have more questions. I keep learning by reading what others are doing.
edit: here's a pic. I used wood chips in this cook, but its the same method.
Getting it started:
View attachment 74718
cold smoke phase: note: I am using the kick ash basket from my large BGE to hold the coal. It conveniently had oak lump leftover.
View attachment 74719
After an hour of cold smoking I lit a small amount of coal with a torch, and slowly brought temps up to 200 or 250F
Once it came up to temp I dumped what was left of the chips on the coals and finished the cook.
View attachment 74720
The rest of the cook is here if you want to see the ending
A torch, gasser, smoke tube and a coal burner...
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