Charcoal definitely has a different (better, IMO) flavor, but you'll have to keep the lighter fluid to a bare minimum. Invest in a charcoal lighter if you wanna be serious about it:
http://www.rainbowappliance.com/7416.html (you can find them much cheaper elsewhere)
Basically you fill the top with charcoal, and then stuff newspapers or similar into the bottom, then set it on top of the grill. Once the charcoal is good and hot, you use the handle to toss them into the grill, and then you're all set.
- Justin