I've done the pellets, wood chunks and dried apple wood from a tree in the yard on the deflector plate, you need to get the grill pretty hot to get them to light off, a smoke tube is a lot easier and you can see how its working. I think both help the smoke output.
If you want extra smoke, more than you get at low setting, look into a smoke tube that you fill with pellets and light and place in the barrel with the meat. It will last as long as most cooks.
There are many available from $10 up.
Happy smoking!
I have tried wood chips and pellets on my 700 deflector plate a few times. Like has already been said, you have to get the grill pretty hot to see any smoke. If I want to smoke something at higher temps, I use the Bullseye. I can put a chunk of wood in it and get it to smoke real good at higher temps. That whole chicken in my avatar was smoked on the Bullseye at 375°.