I've been using wood chips in my BBQ (adding them to the coal) and I enjoy the flavor they add but I have a tough time cooking with them because:

* They cause flare ups
* I have to close the lid to smoke the meat
* Opening the lid would let out the smoke yet handling flare ups isn't possible without access to the food

Of course, I've tried soaking the wood chips in water hours before using them and the only thing that buys me is a slight delay before the flare ups begin. Maybe 5 or 10 minutes, tops. Then, as soon as the wood ignites, I get fires burning the food.

What are some ways to handle flare ups when BBQing with wood chips?