Yeah, marinate them. Marinate them about 8-12 hours if you can, then dry them off with paper towel, put on the rub and let that sit on them for at least 2-3 hours to soak in.
My last marinade was some apple juice, a cheap beer, a couple of tablespoons of chopped garlic and a healthy pinch of Herbs de Provence (a combo of about 7 dried herbs, available in grocery stores).
Chips in the water pan do nothing. Delete.
I do think it helps to remove the membrane. That pretty much stops the smoke from coming through on that side.
Go here to see a picture of the membrane and find out how to prep your ribs. It won't link to the BBS; I guess the owner is funny about that.
Removing The Membrane Start by removing the membrane from the bone side of the slab. This is sometimes referred to as "skinning the ribs". The membrane is a layer of stretchy material that makes for tough eating and inhibits the penetration of rub and smoke into the meat.
Some people (and some barbecue restaurants) skip this step altogether, while others score the membrane with a sharp knife instead of removing it. Personally, I believe removing the membrane is one of the real secrets to creating great ribs.
To remove the membrane, use a butter knife to pry up an edge of the membrane at the sternum end of the slab--the end with the longest bones. Some people find that a screwdriver or oyster knife works well for this task. Use whatever tool works best for you.
Once you get a small area pried up, grasp it with a paper towel and pull it off toward the other end of the slab, as shown in the picture. If you're careful, you can get the membrane off in a single piece, but sometimes it shreds as you pull it off. That's OK, just pry up those remaining bits with your knife and remove them.
You'll notice a thin layer of membrane-like material beneath the membrane you have just removed. This material is what holds the meat and bones together. Just leave it alone--we've removed the tough stuff we were after.
If you purchase ribs from a full-service meat department or butcher shop, ask them to remove the membranes for you.
Definitely use the water pan. Usually, I pour my marinade in the pan and then top up with plain water. Gives it a bit of aromatic goodness.
Enjoy.
By the way, that site
Cooking Topics is an excellent resource. I read it now and then. There's always something I missed and the guy knows how to turn out good BBQ. Of course, you can always improve on his stuff.

When are the ribs done? What Raub said. The meat pulls back from the end of the bone and if you grab said end and give it a twist the whole rib will follow. When you bite into it, the meat will surrender and slide off the bone pretty easily. If you are gnawing the meat off the bone and it's resisting.. it's not done yet.
Heres' a Rub from that Virtual Webe site. You can always cut down on the pepper as Raub said. Rubs are personal; you'll find something you like but you'll still keep experimenting just for fun. I never use MSG btw.
Best Ribs In The Universe Rub - 1/4 Batch
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1/4 cup sugar
1/4 cup non-iodized table salt
1/8 cup brown sugar, dried
4 teaspoons chili powder
2 teaspoons ground cumin
1 teaspoon Accent (MSG)
1 teaspoon cayenne pepper
1 teaspoon black pepper, freshly ground
1 teaspoon granulated garlic powder
1 teaspoon onion powder