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I've smoked with fire coals at my brothers house. But I also used a thermostat in the smoker to help get the temperature. I have not had much time with dutch ovens over an open fire.
I use fire coals. I think the key to getting an even distribution is the color and vibrancy of the coals. It is more work because you have to tend the fire however I feel that it is more rewarding in the end.