I never soak wood chunks for smoking. You want wood to burn and produce smoke, so if you soak it you produce steam instead of smoke. I set my smoke woods to the side of the lit coals with just a corner touching a hot coal. The chunk slowly smokes and doesn't catch fire outright - providing me with the thin blue smoke I'm after.
To my understanding, soak chips, don't soak chunks.
I use chips in a cast iron pan in my gas smoker because the bottom where the flame came through was stupid and would catch them on fire right away. This works perfect for me and my situation.
Used to soak my chips until I knew better. The smoke they produce when wet is the bitter white smoke and not the desired sweet blue smoke when dry. Dry all the way these days! Unless you like bitter meat.
I used to soak, but not any more.
I buy my peach chunks from fruitawoodchunks.com and this is what they say about soaking on their website:
"DO NOT !!!! soak our wood in water. There is enough moisture in our wood to allow for extended smoking period. Soaking in water will only create a sooty smoke making your meats bitter and less desirable to the judges."
You are going to get all sorts of differing opinions. My suggestion is try it both ways and do it the way that best suits you. We do a turkey every July 4th and we soak the chips. no bitter taste, or for that matter anything negative whatsoever. Could sit there and pick at it till all that's left is bone.