Smoking is definitely the best way to do pulled pork if you have the time and equipment. However you cook it, don't rely on internal temp to judge if it's done. Once it gets to 190 start to test with a probe. the probe should pass through the meat without resistance. It takes time and low heat to break down the connective tissue.
My wife really likes a vinegar based sauce on pulled pork. HERE is a link to a great recipe for that style sauce. There is other good info on the site also.
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Get the fat out after smoking and cooking.
I use honey, some apple cider vinegar, salt to taste, tomato sauce, and tomato paste, red peppers, hot but not too hot. adjust flavor with tomato ketsup( the one without high fruitcose corn syrup) and a little more cider etc.
All of this has to be to your taste. If the sauce won't stand on it's own to your taste don't put it on the meat.
The pepper and vinegar carry most of the flavors with some involvement of tomato.
My final adjustment is heat from pepper. I tear the meat, with forks, after smoking over Mesquite before finishing in the oven, In the sauce about 220 degrees of so.
The fat give off notes in the sauce so i try to get it all out of brisket, chicken or beef.
I never get it exactly the same every time but there is never any left. The heat of pepper changes flavors a lot.