The trick is to smoke the meat and not make the meat smoke

GRILLED POTATO PACKET

  Date: October 09, 2010
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This recipe was loosely based on one from the Cooking.com website. The changes I made was to go from sliced onion to diced onion and I added some fresh thyme which was being used in the Grilled Lamb Chops w/ Herbs I was making this day. The prep started with laying out two large pieces of foil. Next came some grated butter, followed by 1/4” thick potato slices, kosher salt, freshly ground black pepper and fresh time. Last were the diced onions and some more grated butter. The two pieces of foil were sealed individually to provide two layers of protection. The potatoes were direct grilled on high for 40 minutes total and were flipped over every 10 minutes. The potatoes were moist and tasty and went well with the herbed lamb. You could substitute some other herb for the thyme to suit the dish you are making on a given day.
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Recipe Source:
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about.com
Cooking.com Website: Similar to this Cooks.com recipe. I used diced, not sliced, onion and added fresh thyme.

Here is the recipe from the Cooks.com Web Site: GRILLED POTATOES
Grill:
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Kenmore Elite Gas Grill

Direct Grilled:

Using Kenmore Elite Gas Grill