Wow, I'm not sure where to start.
You definitely want your heat source to be hot coals. How you achieve that is flexible. You can start with seasoned wood, or start with charcoal. Either way, you need to establish a hot bed of coals, and add wood to it a little at a time, so you are not trying to get a lot of wood ignited and burning efficiently in a short amount of time.
If this is your first cook on this cooker, I'd say you might want to get your hot bed of coals going with some lump charcoal, and add small pieces of seasoned wood to that.